Breaking News – Oerlikon separates itself from Natural Fibres and Textile Components

Oerlikon separates itself from Natural Fibres and Textile Components

Oerlikon Group signed an agreement with Jinsheng Group of China in order to divest the Natural Fibres and Textile Components Business Units from its Textile Segment. In the future this segment will focus on manmade fibre business considered in-house as a high performing segment with less cyclicality

The selling transaction is based on an enterprise value of around CHF 650 million and is expected to be finalised in the third quarter of 2013. It is also subject to merger control approval in several countries.

With the transaction the textile exposure of Oerlikon Group will decrease from today’s 53 % (excluding the divested solar business) to 33 % of total sales. Oerlikon Textile reported sales of CHF 2.0 billion in 2011. The to be sold business units accounted for sales of CHF 1.1 billion in 2011 and they employ around 3800 persons.

The buyer

The buyer, Jiangsu Jinsheng Group was established in 2000 in the Jintan Economic Development Zone of Jiangsu Province. The group is now – according to in-house information – a leading manufacturer of high-end CNC machines and tools, regenerated cotton fibre, as well as saliva based test technologies. Thus, there are four business units including real estate. The group reports annual sales better than CNY 6.6 billion or around CHF 1.0 billion and employs over 5000 persons and there are 70 subsidiaries worldwide. Jinsheng belongs by majority to investor Pan Xueping.

Jinsheng Group holds investments in four areas, namely CNC Machines with a 50 % participation in German EMAG Group supporting the development of their Asian business, then Cotton Spinning and Recycling, Real Estate and Diagnosis test for HIV, alcohol and drugs.

For the segment of Oerlikon Natural Fibres, including the takeover of all employees and production sites in Europe, U.S.A. and Asia, a new Saurer Group will be formed and the board of directors will be composed of four European and three Asian members. The Chairman will be Heinrich Fischer (until 2007 CEO of Saurer and actually holding other board positions in two other companies), Hans-Georg Härter (until 2012 CEO of ZF), Rudolf Huber (until 2005 CEO of Geberit and board member of other companies) and Guido Spix (CTO Multivac), Pan Xueping (major investor and founder of Jinsheng Group) Jesse Guan (Head of CNC Machines Jinsheng Group).

The operational business of the new Saurer Group will be led by the current management team of OC Oerlikon Natural Fibre and Components Daniel Lippuner (44), former CEO of the Component business and he will be appointed as CEO of the new Saurer Group. Prior to his six years with Oerlikon Corporation he held different management positions at Hilti Group (FL).

Pan Xueping and Jinsheng Group entertained long term business relations with Saurer and OC Oerlikon, and both dispose of an in-depth knowledge of the textile industry. It is their aim to further enhance a long term sustainable strategy as a leading textile machinery manufacturer and to meet customers’ requirements by innovative products and excellent services.

TextileFuture will provide you with further background and information in the next several days.

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