14.12.2006 - Rieter sells its remaining manmade fiber activities
Winterthur – Rieter has signed a sales agreement with Bavaria Maschinenfabrik GmbH for the business in machinery and systems for manufacturing synthetic continuous filament yarns. The new owners, a subsidiary of the German company Bavaria Industriekapital AG, have many years of experience in systems engineering and the management of medium-sized industrial companies. They focus on acquiring European companies with a strong market position and potential for earnings enhancement. The parties have agreed not to disclose the contractual terms of this transaction.
As Rieter has already announced, both the activities for manufacturing manmade continuous filament yarns and the ply twisting, doubling and texturing business have been the subject of a strategic review within the Textile Systems Division. Rieter has come to the conclusion that it is unable to develop this business profitably. The assets and liabilities of this Winterthur-based business unit are therefore being sold to Bavaria Maschinenfabrik GmbH, which will also continue to employ the unit's personnel. Continuity of customer service and spare parts supplies is therefore assured.
This unit of Rieter Machine Works Ltd., Winterthur, has some 80 employees and generated sales of some CHF 50 million in 2005 (machines and spare parts).
About half the total output of manmade fibers is produced as staple fiber rather than continuous filament. Rieter can therefore continue to participate in market growth in the processing of manmade fibers. Staple fiber machines, for which Rieter is the leading systems supplier, are increasingly being used to produce yarns made from blends with manmade fibers in addition to pure cotton fibers.
Bavaria Industriekapital AG is an industrial holding company with more than 3 000 employees and sales of more than EUR 500 million. BAVARIA systematically develops the companies it acquires in order to exploit their potential to the full and thus increase the corporate value of BAVARIA as a whole.
The Rieter Group operates internationally, developing and producing sophisticated systems solutions for the textile and automotive industries. In the 2005 fiscal year Rieter generated sales of CHF 3 122 million with some 14 600 employees worldwide. The Textile Systems Division accounted for CHF 1 085 million and the Automotive Systems Division for CHF 2 031 million of this total.
symTTex system for the production of carpet yarns.
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