Rieter to acquire the textile activities of the German-based Suessen Group

will progressively acquire the textile machinery activities of the German-based Suessen Group. The Suessen Group, with headquarters in Süssen, Germany, is a market leader in the development of spinning technology for the textile machinery industry and is one of the largest manufacturers of key components for spinning machinery. In the 2000 financial year Suessen generated sales of some 200 million CHF with these activities with a workforce of 1870 employees worldwide. The group operates production plants in Germany, the USA, the Czech Republic, India and Brazil, and has more than 1000 employees in the three last-named countries. Suessen has to date been owned by the Stahlecker family. The parties have agreed not to disclose the purchase price.

The acquisition of Suessen's textile machinery business represents a major stride in Rieter Textile Systems' strategy. With the integration of Suessen's research and development activities and patents, Rieter will reinforce its innovative thrust and engineering expertise in textile machinery manufacturing. Together with Suessen, Rieter will also become the world's largest supplier of spare parts, wearing parts and retrofit components for staple fibre machinery as well as in the service sector. This business is less subject to cyclical fluctuations on the world market and contributes to steady growth in sales and earnings. In combination with Suessen, Rieter can also exploit to even better effect the cost benefits of the well-equipped production facilities in the Czech Republic and India.

Through this acquisition Rieter will generate additional sales, open up substantial growth potential and reinforce its market position in the three leading spinning processes of ring spinning, rotor spinning and compact spinning.
Progressive integration
As a first step, Rieter will acquire from Suessen all patents, its research and development company and a component manufacturing plant in the Czech Republic, which account for total annual sales of 40 million CHF. The Suessen-based parent company of the group is currently undergoing restructuring with a view to adjusting its operations to market requirements and in order to ensure sustained profitability. Rieter will also integrate this company after the reorganization process has been completed.

The Rieter Group
Rieter operates in the textile machinery and automotive supply sectors. In the 2000 financial year Rieter generated sales of 2929 million CHF with 12232 employees worldwide. The textile machinery business and the automotive supply activities accounted for 1088 and 1825 million CHF of this total, respectively.

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Contact:
Dr. Barbara Meili
Phone: +41-52-208 70 12
Fax: +41-52-208 72 73
Email: barbara.meili@rieter.com