The Oerlikon Group has signed an agreement with the Jinsheng Group of China to divest the Natural Fibers and Textile Components Business Units from its Textile Segment.The divestment is an important strategic step to optimize and balance Oerlikon's portfolio by significantly reducing the Group's overall exposure to the textile industry.
Oerlikon's Textile Segment will focus on the manmade fiber business,a high performing segment with less cyclicality.The transaction is based on an enterprise value of around CHF 650 million and is expected to close in Q3 2013.
Oerlikon CEO Michael Buscher said:"This transaction is a further milestone in balancing the Oerlikon portfolio.It significantly reduces our overall exposure to the textile industry and allows us to focus on the less cyclical,higher margin manmade fibers business,which will deliver sustainable benefit to our shareholders,customers and employees."
The divestment of the Natural Fibers and Textile Components Business Units considerably reduces Oerlikon Group's exposure to the global textile business,whilst retaining and building on its position as a world leader in the manmade fibers segment.
With sales of CHF 2.0 billion in 2011,the Textile Segment represented 53%of total restated Group sales(excluding the recently divested Solar business).The Business Units being sold accounted for sales of CHF 1.1 billion in 2011 and employ around 3 800 employees.After the divestment,the restated share of revenues from the textile sector will be around 33%of total Group sales.
Oerlikon is a leading high-tech industrial group specializing in machine and plant engineering.The Company is a provider of innovative industrial solutions and cutting-edge technologies for textile manufacturing,drive,vacuum,coating,and advanced nanotechnology.
A Swiss company with a tradition going back over 100 years,Oerlikon is a global player with nearly 17 000 employees at over 150 locations in 38 countries and reported sales of CHF 4.2 billion in 2011.The Company invested in 2011 CHF 213 million(reported)in R&D,with over 1 200 specialists working on future products and services.In most areas,the operative businesses rank either first or second in their respective global markets.
Oerlikon's Manmade Fibers Business Unit with its brands Oerlikon Barmag and Oerlikon Neumag is the
worldwide leading supplier for innovative solutions for chemical fiber production that meets requirements for productivity,quality and lower conversion costs.
In addition to filaments and staples solutions it also offers solutions for Nonwoven and BCF carpet yarn technology.Its technological leadership and strong market position have resulted in an exceptionally strong order book which already contains orders for equipment delivery in 2015.
The Jiangsu Jinsheng Group was established in the year 2000 in the Jintan Economic Development Zone
of Jiangsu Province.The Jinsheng Group is now a leading manufacturer of high-end CNC machines&
tools,regenerated cotton fiber as well as saliva based test technologies.
Source:
http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=118629
