Switzerland-based Rieter reports it has acquired the precision winding machine SSM Textile Machinery (SSM) division — including SSM Schärer Schweiter Mettler AG in Switzerland, as well as Italy- and China-based subsidiaries — from Schweiter Technologies AG, Switzerland.
The deal closed for 124.2 million Swiss francs ($113.5 million) and includes an enterprise value of 100 million Swiss francs ($91.3 million) and liquid funds. According to Rieter, it financed the purchase through existing funds, and the deal will have a positive effect on earnings per share. Rieter plans to attach SSM to its Business Group Components as an independent unit. Current SSM management will continue to operate the unit as it currently is structured.
During the 2016 fiscal year, SSM’s net sales totaled 85.9 million Swiss francs ($78.5 million) with an EBITDA margin of 14.8 percent.