A further successful step in rebalancing Oerlikon’s portfolio
- Significant reduction of Oerlikon’s exposure to the textile industry from 53 % to 33 % of total sales
- Remaining Textile Segment to focus on the manmade fiber business
- Transaction based on an enterprise value of around CHF 650 million
- Oerlikon guidance for full year 2012 revised upwards
- Closing expected in Q3 2013
Pfäffikon SZ, Switzerland – December 3, 2012 – 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.
Process and Guidance
The transaction is subject to merger control approval in a number of countries. Closing is expected in Q3 2013.
Oerlikon will report the Natural Fibers and Textile Components Business Units under “Discontinued Operations” in the 2012 full year accounts. Consequently, Oerlikon updates its guidance for the financial year 2012. Based on preliminary restated FY 2011 Group figures for sales (CHF 2.7 billion), order intake (CHF 2.9 billion) and an accretive EBIT margin impact, Oerlikon expects the following for continuing operations for the financial year 2012:
- sales growth of more than 5 % (prior: to be at 2011 levels)
- order intake to be close to previous year’s level (prior: up to minus 5 %)
- EBIT margin expected to increase by around 1 percentage point on prior guidance (prior: around 12.5 %, reported)
Oerlikon (SIX: OERL) 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 will continue to develop its leading position in the growing manmade fiber market. The global manmade fiber market has experienced a compounded annual growth rate of about 5 % for the past five years. New industrial applications in the automotive industry and construction provide further growth potential in addition to the ongoing substitution of natural fiber in the apparel industry worldwide. 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. It includes four business units: High End Machine & Tools BU, Regenerated Cotton Fiber BU, Real Estate BU and Saliva based Test BU. The Jinsheng Group has annual sales turnover above RMB 6.6 billion (app. CHF 1.0 billion), with over
5 000 employees and 70 subsidiaries in all regions of the world.
OC Oerlikon Corporation AG, Pfäffikon (together with its affiliates hereinafter referred to as “Oerlikon”) has made great efforts to include accurate and up-to-date information in this document. However, Oerlikon makes no representation or warranties, expressed or implied, as to the truth, accuracy or completeness of the information provided in this document and Oerlikon disclaims any liability whatsoever for the use of it.
This document (including all statements made therein) is based on estimates, assumptions and other information currently available to the management of Oerlikon. This document contains certain statements related to the future business and financial performance or future events involving Oerlikon that may constitute forward-looking statements. The forward-looking statements contained herein could be substantially impacted by risks, influences and other factors (many of which are not foreseeable at present and/or are beyond Oerlikon`s control), so that actual results, including Oerlikon`s financial results and results of operation, may vary materially from and be worse than those (expressly or implicitly) anticipated, expected or projected in the forward-looking statements. There can be no assurance and no representation or warranty, express or implied, is given that such forward-looking statements will be realized. Oerlikon is under no obligation to (and expressly disclaims any obligation to) update or otherwise review its forward-looking statements, whether as a result of new information, future events, or otherwise.
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