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.
marketing@alchempro.com
