Manmade fibre segment is no longer the dominant business activity at Oerlikon
The bid of Oerlikon to acquire Sulzer Metco (surface solutions) from Swiss Sulzer Group was successful and an agreement was signed on January 31, 2014, for an enterprise value of CHF 1.0 billion. A combination for Metco with Oerlikon’s existing Coating Segment (Balzers) will form the world technology leader in Surface Solutions. The combined businesses will have pro forma sales of CHF 1.2 billion in 2012 (around 33 % of Group Sales) and will own130 facilities with more than 110 coating centres in 35 countries, employing around 6000 persons.
On a pro forma basis the Oerlikon Groups sales (for all of 2012) will increase by 24 % to CHF 3.6 billion.
This acquisition has to receive the approval of the competition authorities of various jurisdictions. We would like to add that Oerlikon’s Coating System is highly profitable and it will take time, management capabilities and absorb additional financial means to bring up profits of Metco to the same levels.
With the acquisition the Manmade Fibre Segment is no longer the dominant business activity at Oerlikon Group. We will follow closely, if this segment will still get the same favourable treatment after the integration of Metco into Oerlikon Group has taken place. TextileFuture maintains its opinion, that the last word on the future remaining of the Manmade Fibre Segment within Oerlikon Group is not yet spoken.