- 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
PFAFFIKON, 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)
Posted December 19, 2012
Source: OC Oerlikon Management AG