Oerlikon sells Barmag to Rieter

(CONNECT) Oerlikon reported a slight decline of 3.7 per cent in sales at constant exchange rates in the first quarter compared with the same period last year, according to a statement. Order intake remained virtually stable at minus 1.6 per cent. The technology company, which is headquartered in Pfäffikon, also announced that it has signed a definitive agreement to sell Barmag, its textile machinery business for manmade fibers, to Rieter in Winterthur for an upfront purchase price of 713 million Swiss francs. Barmag includes the brands Oerlikon Barmag, Oerlikon Neumag and Oerlikon Nonwoven. “We are very proud to welcome Oerlikon Barmag, Oerlikon Neumag and Oerlikon Nonwoven to Rieter", Rieter-CEO Thomas Oetterli is quoted in a press release. “We are convinced that this combination will form a market leader in the textile industry which will create value for our shareholders, customers and employees.”

The transaction values Barmag at 850 million Swiss francs. Oerlikon will use the cash proceeds to repay a loan of 475 million Swiss francs, for general corporate purposes and for a potential distribution to shareholders, according to the statement. The transaction is subject to customary regulatory clearance and is expected to close in the fourth quarter of 2025.

“With the definitive agreement with Rieter, we have found a Swiss industrial solution that optimizes value for all stakeholders and marks an important milestone in executing our pure-play strategy. We are pleased that our manmade fibers business, Barmag, will be part of a proven global leader in textile technologies,” Michael Suess, Executive Chairman von Oerlikon, is quoted as saying. Going forward, he said his company will fully focus on becoming a leader for surface technologies.

Both Rieter and Barmag have a long-standing track record of innovation leadership and expertise in plant engineering for the textile industry, according to the statement. It writes that the transaction is highly complementary for Rieter, introducing manmade fibers to its existing natural fibers focus. ce/gba