Rieter, a global leader in short-staple fiber machinery, is accelerating its transformation into a diversified powerhouse by preemptively restructuring its organization ahead of the planned CHF 713 million acquisition of OC Oerlikon's Barmag division. This strategic maneuver is designed to create a single-source system provider for both natural and man-made fibers, positioning the combined entity as a major force in the evolving $52 billion textile machinery market.
The ‘Dual-Fiber’ strategy and synergies
The key restructuring, effective January 1, 2026, involves merging its existing Machines & Systems and After Sales divisions into a new Short-Staple Fiber Division. Upon the anticipated completion of the Barmag acquisition in the fourth quarter of 2025, the Barmag business, a market leader in man-made fiber equipment with CHF 734 million in 2024 sales will be integrated as the new Man-Made Fiber Division. This move directly addresses the market trend where synthetic fibers now account for over 60% of textile machinery revenue, offering Rieter a crucial presence in high-growth segments like filament spinning and nonwovens.
The company projects annual savings of nearly CHF 30 million from operational streamlining and aims to enhance its technology leadership by intensifying development between its core Rieter business and specialized component brands like Accotex and Graf.
Navigating industry cycles and financial outlook
Rieter's decisive action comes amidst a persistently weak market environment characterized by geopolitical uncertainty, which has pushed several customer projects into 2026. The company recently adjusted its full-year 2025 sales forecast (excluding Barmag) to approximately CHF 700 million (down from up to CHF 800 million), with a projected negative net result due to acquisition and restructuring costs (CHF 30-35 million one-off charge).
CEO Thomas Oetterli states the combined entity will form a "market leader" whose structurally higher margins in the man-made fiber business are expected to enhance Rieter's through-the-cycle profitability, creating value for shareholders who supported the transaction's financing through a capital increase.
