Slide 1: Acquisition of SSM Textile Machinery
Acquisition of SSM Textile Machinery . .Media. .and. investor. . .presentation, . . . . July . 3,. 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Dr. Norbert Klapper, Group CEO . . . . . . . . . . . . . . Joris Gröflin, Group CFO . . . . . . . . .
Slide 2: Acquisition of SSM: Transaction highlights
Acquisition of SSM Transaction highlights • Rieter acquires 100% of SSM from Schweiter Technologies AG • Investment in adjacent fields of the textile value chain • SSM is a global technology leader with a strong global brand • SSM generates an attractive EBITDA margin and stable cash flows • Opportu
Slide 3: SSM is a strong niche player
Introduction of SSM is a strong niche player • Key data (2016): ‒ Net sales: CHF 85.9 million ‒ EBITDA margin: 14.8%, stable cash flows ‒ 246 employees • Leading position ‒ Precision winding (dyeing and weaving preparation) ‒ Sewing thread preparation ‒ Filament niche applications • Top class global
Slide 4: Business Rationale
Business Rationale SSM is an attractive addition to Rieter’s business • Industry focus – adjacent segments of the textile value chain • Premium position – strong global brand • Technology base – winding operations on Rotor/AirJet machines • Customer overlap – integrated textile manufacturers • Manag
Slide 5: SSM's Key Financials
SSM’s Key Financials Strong and stable margins Actual figures, in CHF million 2011 2012 2013 2014 2015 2016 Orders received 73.5 71.6 78.2 89.3 69.7 101.8 Net sales 72.9 69.3 73.7 87.9 74.3 85.9 EBITDA 8.8 8.4 8.1 14.6 9.2 12.7 % of net sales 12.1% 12.1% 11.0% 16.6% 12.4% 14.8% EBIT 8.3 7.4 6.9 13.4
Slide 6: Key Financial Considerations
Key Financial Considerations Acquisition financed from own funds • Enterprise value CHF 100.0 million, purchase price CHF 124.2 million • EBIT multiple: 8.6x (2016), EBITDA multiple: 7.9x (2016) • Purchase price financed from Rieter’s cash • Rieter Group to enhance cash generating capacity – transac
Slide 7: Disclaimer
Disclaimer Rieter is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoever