Rieter to Acquire Barmag, Expanding into Manmade Fibers

Rieter has entered into a definitive agreement to acquire Barmag, a business unit of OC Oerlikon, for an upfront equity purchase price of CHF 713 million. This strategic move is designed to strengthen Rieter’s global presence across the textile machinery market and to establish itself as a leading force in both natural and synthetic fiber processing. Headquartered in Winterthur, Switzerland, the expanded company will integrate Barmag’s capabilities with Rieter’s established short-staple fiber operations, forming a complementary and powerful global portfolio.

Barmag specializes in machinery for manmade fiber production, including filament spinning systems, texturing machines, BCF (bulk continuous filament) systems, staple fiber spinning, and nonwoven solutions. As a provider of engineering services across the textile value chain, Barmag generated revenues of CHF 734 million in the 2024 fiscal year and employs around 2,600 people globally.

The acquisition includes the prominent brands Oerlikon Barmag, Oerlikon Neumag, and Oerlikon Nonwoven. These brands are recognized leaders in technological innovation, serving major global markets such as China, India, Türkiye, and the United States. Product development takes place in high-tech centers located in Remscheid and Neumünster (Germany), as well as in Suzhou and Wuxi (China).

As global fiber consumption is projected to rise, particularly in the manmade fiber segment, the acquisition positions Rieter to meet growing global demand across fashion, home furnishings, and technical textile applications. Due to environmental and resource limitations, the growth of natural fibers like cotton and linen remains restricted, highlighting the strategic importance of scaling manmade fiber solutions.

This transaction is consistent with Rieter’s long-term strategy, following prior acquisitions that expanded its reach in short-staple fiber technologies and components. The integration of Barmag’s filament capabilities will diversify Rieter’s technology base and end-market exposure, reducing cyclicality and enabling it to leverage the expected recovery in both filament and short-staple fiber markets. Furthermore, the acquisition enhances Rieter’s presence in the Asia-Pacific region and brings access to Barmag’s advanced digitization and sustainability expertise.

Leadership Statements:

Rieter CEO Thomas Oetterli expressed enthusiasm over the acquisition, stating:

“We are very proud to welcome Oerlikon Barmag, Neumag, and Nonwoven to the Rieter family. This combination forms a strong market leader in the textile machinery industry and will deliver significant value to shareholders, customers, and employees alike.”

Barmag CEO Georg Stausberg added:

“This new ownership under Rieter offers the best path forward, with synergies in market understanding, technological expertise, and a unified offering to our global customer base.”

Financial Terms and Funding Structure:

The total enterprise value of CHF 850 million corresponds to an EV/EBITDA multiple of 6.3x (excluding synergies) over the business cycle. An additional earn-out component may be payable if certain performance milestones are reached by 2028. Given Barmag’s historically resilient margins and consistent profitability, the acquisition is expected to enhance Rieter’s financial performance.

To finance the transaction, Rieter has secured a bridge loan facility. The refinancing of this facility will occur through:

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

Peter Spuhler, through PCS Holding AG and holding approximately 33% of Rieter’s shares, supports the deal and will participate pro-rata in the rights issue while investing further via the private placement. Likewise, the second-largest shareholder, Martin Haefner (approx. 10% holding), has pledged similar support and capital commitment.

Rieter aims to maintain a stable financial position and expects to rapidly reduce its debt levels from a pro forma combined leverage of around 3x by the end of 2024. This will be facilitated by projected cash flow from the combined entity. An Extraordinary General Meeting (EGM) is anticipated in Q3 or Q4 2025 to secure shareholder approval for the capital raise. Details of the rights issue will be finalized and announced around the time of the EGM.

Closing Timeline and Advisors:

The completion of the transaction is subject to customary closing conditions, including regulatory approvals, which Rieter is confident of securing. The closing is expected in the fourth quarter of 2025.

Alantra serves as the exclusive financial advisor to Rieter, with legal counsel provided by Lenz & Staehelin. UBS is underwriting the bridge facility and will act as the Sole Global Coordinator, Bookrunner, and Manager of the capital increase.