Rieter has financed the purchase price by cash and available credit lines.

With this acquisition, Rieter will complete the offering of ring- and compact spinning systems by acquiring the Schlafhorst automatic winder business. Additionally, the company has invested in two attractive component businesses – Accotex (elastomer components for spinning machines) and Temco (bearing solutions for filament machines), Rieter said in a media release.

In total, the three businesses had a combined turnover of €142 million in 2020, the year of the COVID crisis. In 2019 and 2018, the total combined turnover was at a level of €235 million and €260 million, respectively.

Rieter and Saurer expect to close the transaction this month. In the first step of the transaction, Rieter will acquire 57 per cent of the shares of Saurer Netherlands. The shares will be returned to Saurer after the implementation of the transaction in six to nine months.

In connection with the transaction, it is envisaged that Rieter will supply automatic winders to Saurer in the future.

The company has also decided to convene an Extraordinary General Meeting at which its members, Luc Tack and Stefaan Haspeslagh, will be dismissed.

Fibre2Fashion News Desk (KD)