Rieter Holding AG Accelerates Growth with Strategic Acquisition

In a bold move to solidify its position in the global market, Rieter Holding AG, a Swiss industrial powerhouse known for its spinning systems and chemical fiber systems, has announced the acquisition of Barmag from OC Oerlikon. This strategic acquisition, announced on May 6, 2025, is set to accelerate Rieter’s growth strategy and propel the company towards becoming a market leader in natural and man-made fibers.

A Strategic Leap Forward

Rieter, listed on the SIX Swiss Exchange, has been a key player in the machinery industry, specializing in the production of systems designed to process cotton and man-made fibers. With this acquisition, Rieter aims to enhance its product offerings and expand its footprint in the global market. The move is expected to provide Rieter with a competitive edge in the industry, allowing it to leverage Barmag’s expertise and technology to innovate and improve its manufacturing processes.

Financial Implications

The acquisition is a significant financial undertaking, with OC Oerlikon divesting Barmag to Rieter for an enterprise value of CHF 850 million, potentially reaching up to CHF 950 million including an earn-out. This transaction represents an attractive valuation, reflecting the strategic importance of Barmag to Rieter’s long-term growth objectives.

Market Reaction

Following the announcement, Rieter’s stock, which closed at CHF 72.6 on May 1, 2025, is expected to react to the news. The company’s market capitalization stands at CHF 327,070,000, with a price-to-earnings ratio of 29.8. Investors and market analysts are keenly watching the developments, anticipating how this acquisition will influence Rieter’s financial performance and market position.

OC Oerlikon’s Strategic Shift

For OC Oerlikon, the divestiture of Barmag marks a strategic shift, allowing the company to optimize its portfolio and focus on its core competencies. Despite facing market headwinds, OC Oerlikon reported a stable order intake in the first quarter of 2025, with sales slightly lower than the previous year due to challenging market conditions. The sale of Barmag is seen as a milestone in Oerlikon’s strategy to enhance shareholder value and streamline its operations.

Looking Ahead

As Rieter integrates Barmag into its operations, the company is poised to leverage this acquisition to drive innovation, expand its product range, and strengthen its market leadership in the spinning and chemical fiber systems sector. This move is a testament to Rieter’s commitment to growth and its strategic vision for the future.

For more information on Rieter’s acquisition and its implications for the industry, stakeholders are encouraged to visit Rieter’s official website and review the detailed media release and investor presentation available in the media kit.

This narrative-driven article provides an overview of Rieter Holding AG’s strategic acquisition of Barmag from OC Oerlikon, highlighting the financial, strategic, and market implications of this move.