Rieter sells pelletizing machinery business

Rieter AG (Winterthur, Switzerland, www.rieter.com) is selling its activities in machinery and systems for manufacturing plastics granulates to CGS Management (Pfäffikon, Switzerland, www.cgs-management.com) with retroactive effect as of January 1, 2008. The two parties signed a purchase and sale agreement on February 25, 2008, for the Rieter Automatik GmbH business unit, based in Grossostheim (Germany), which is no longer a core activity for Rieter. The parties have agreed not to disclose the terms of the contract.

Following a strategic review of the product portfolio of the Textile Systems Division, Rieter has decided to concentrate on its core business with staple fiber and nonwovens production machinery, technology components and service offerings. Rieter is therefore disposing of the pelletizing machinery activities. The pelletizing machinery business has developed very successfully and profitably since the integration of Rieter Automatik (www.rieter-automatik.de, www.pelletizing.com) into the Rieter Group in 1992. Achievements include, for example, market leadership in the field of extrusion pelletizing, the successful launch of a product developed in-house in the field of underwater pelletizing and international expansion with service centers in China, Brazil, Taiwan and the USA.

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CGS Management aims to pursue the further development of the business and its expansion into a systems supplier. Rieter Automatik will thus be better equipped to face the challenges of the future. All interests in Rieter Automatik GmbH, based in Grossostheim/D – including all patents and trademarks – are being sold to CGS Management. This company is also acquiring the manufacturing facilitiy in Germany, the global sales and marketing activities and the service centers. CGS specializes in the further development of industrial groups and is thus ideally suited to ensure the sustained development of this business.

About Rieter Automatik
Rieter Automatik GmbH employs a workforce of 230 in Grossostheim and generated sales of some 70 million CHF with machinery and spare parts in 2007. The company is world leader in the manufacture of pelletizing systems and components, and offers all current processes for producing and recycling plastics or pelletizing low-viscosity liquids.

About CGS Management
CGS Management is an independent, experienced industrial partner focussing on developing mediumsized enterprises into international industrial groups. In addition to financial strength, the long-term industrial experience of the owners of CGS in an international business environment is of particular importance in this process. The company concentrates primarily on companies in Switzerland and the neighboring German-speaking countries.

Rieter Automatik GmbH, Grossostheim, Germany

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