Rieter To Acquire Barmag For CHF 713 Million

Rieter has signed a definitive agreement to acquire Barmag, a division of OC Oerlikon, for an upfront equity purchase price of CHF 713 million. This strategic acquisition will position Rieter as a global leader in both natural and manmade fiber technologies and significantly accelerate the company’s growth strategy.

Barmag, a global market leader in equipment for manmade fiber production, generated CHF 734 million in sales in FY 2024 and employs around 2,600 people. The acquisition is expected to be highly complementary to Rieter’s existing short-staple fiber business, with strong synergies across technologies, solutions, and end-markets.

Barmag encompasses the brands Oerlikon Barmag, Oerlikon Neumag, and Oerlikon Nonwoven. Its core offerings include filament spinning systems, texturing machines, BCF systems, staple fiber spinning, and nonwovens solutions. Key markets include China, India, Türkiye, and the United States, with technology centers located in Germany (Remscheid and Neumünster) and China (Suzhou and Wuxi).

As global fiber consumption continues to rise, especially in manmade fibers, this acquisition strategically positions Rieter to meet growing demand in apparel, technical textiles, and home textiles. With natural fibers like cotton and linen limited by ecological constraints, manmade fibers will be essential to fulfilling future market needs.

Thomas Oetterli, CEO of Rieter, commented, “We are very proud to welcome Oerlikon Barmag, Neumag, and Nonwoven to Rieter. This combination will form a market leader in the textile industry, creating value for shareholders, customers, and employees.”

Georg Stausberg, CEO of Barmag, added, “With this solution, we gain the best possible new ownership. As textile companies, we share market understanding, technological expertise, and a complementary offering for our global customer base.”

The CHF 850 million enterprise value reflects an EV/EBITDA multiple of 6.3x through-the-cycle (excluding synergies). An earn-out component is also included, contingent on financial performance by 2028. The acquisition is expected to be accretive to Rieter’s earnings and enhance financial resilience, thanks to Barmag’s strong profitability and margin stability.

Financing is fully secured through a bridge loan facility underwritten by UBS. Rieter plans to refinance via:

• A fully underwritten CHF 400 million rights issue with tradable subscription rights
• A CHF 77 million non-pre-emptive private placement fully subscribed by Rieter’s two largest shareholders
• Additional bank financing

Rieter’s largest shareholder, PCS Holding AG (Peter Spuhler), holding approximately 33%, has committed to supporting the capital raise. Second-largest shareholder Martin Haefner (~10%) has also pledged pro-rata participation and additional investment.

Following the equity raise, PCS Holding AG is expected to retain a 33% stake. Rieter remains committed to maintaining a strong balance sheet and expects to rapidly deleverage from a pro forma combined leverage ratio of ~3x by the end of 2024.

An Extraordinary General Meeting (EGM) is expected in Q3 or Q4 2025 to seek shareholder approval for the rights issue and private placement. The transaction remains subject to customary closing conditions, including regulatory approvals, with completion targeted for Q4 2025.