Rieter acquired the SSM Textile Machinery division (SSM) from Schweiter Technologies AG, Horgen, Switzerland. With this acquisition, Rieter is investing in adjacent fields of the textile value chain.
SSM’s expertise in the field of precision winding offers opportunities for Rieter in the business with short-staple spinning machines. Rieter will continue to operate SSM in its current form and with the existing management. The business will be attached to the Business Group Components as an independent unit.
SSM is a supplier of precision winding machines in the fields of dyeing, weaving and sewing thread preparation and enjoys success in individual segments of filament yarn production. SSM has a strong brand and generates stable cash flows with an attractive EBITDA margin.
SSM comprises the companies SSM Schärer Schweiter Mettler AG in Horgen and subsidiaries in Italy and China. SSM is also represented worldwide with 12 of its own service stations and 80 agents in all major markets.
In the fiscal year 2016, SSM generated net sales of 85.9 million Swiss francs with 246 employees and achieved an EBITDA margin of 14.8 percent.
Rieter is financing the purchase price from existing funds. The acquisition will have a positive impact on earnings per share.