Sulzer Sells Sulzer Textil To Promatech

Promatech S.p.A., Italy, a member of the Itema Group, has agreed with Sulzer Ltd to acquire Sulzer
Textil, subject to approval by the regulatory authorities.The worldwide Sulzer Textile business
will be transferred to Promatech. All employment contracts will be taken over in their present
form.Given the ongoing consolidation process in the industry, this is an important step towards a
successful future with sustainable earnings for the combined companies. The new group will be able
to offer customers a comprehensive product line and a global service network. Sulzer Textil will
continue its business as an operationally independent group. This includes the right to use the
trade name “Sulzer Textil.” The parties agreed not to disclose the transaction price.The
divestiture of Sulzer Textil is part of the focusing strategy of the Sulzer Corporation.Fred
Kindle, CEO, Sulzer Ltd., commented, “I am pleased that Sulzer Textil is being acquired by a
strategically well positioned group. For Sulzer, this is an important step towards completion of
the divestiture program, which will generate CHF 400 million in net proceeds for Sulzer.”Ulrich
Bolleter, president, Sulzer Textil, said, “In view of our strengths in quality, product innovation
and services together with the environment of Promatech and the Itema group, I have full confidence
in the long-term success of Sulzer Textil.”Miro Radici, Chairman, Itema Group, declared, “With the
acquisition of Sulzer Textil, we will gain market leadership in the worldwide weaving machinery
business. The synergy between the main business areas allows the Itema Group to offer its customers
a comprehensive range of innovative products and services to the highest quality standards.”Sulzer
Textil offers the broadest range of weaving machines from rapier to projectile to mutil-phase
technology. Regarding air-jet weaving machines, Sulzer Textil has been collaborating for many years
with Toyoda Automatic Loom Works, Japan. The strengths of Sulzer Textil include its
well-established global sales and service network, innovative products and the high quality of its
customer support and services. Sulzer Textil, with sales of EUR 440 million (CHF 684 million) in
2000, employs around 1850 people in total.Promatech (sales in 2000: EUR million; 750 employees) is
part of the Itema Group, which is active in four market areas: weaving machines, winding machines,
accessories and high-technology electronics. The Itema Group controls the following companies:
Promatech (with the two weaving machine brands Somet and Vamatex), Savio, Fimtextile, Nuova OMV,
Cincla, Actex, Eutron and Saar.