From the Sector

Lectra announces its plan to acquire the entire capital and voting rights of US-based Gerber Technology. A key Industry 4.0 player in the fashion, automotive and furniture industries, Lectra designs smart industrial solutions – software, equipment, data and services – that help brands, manufacturers and retailers develop, produce and market their products.

The acquisition, if and when consummated, would allow Lectra to complement its market position and continue to enhance its offerings based on Industry 4.0 technology that will enable its customers to boost the productivity and profitability of their operations. After the French work council of Lectra is consulted and the binding documentation is signed, completion of the acquisition shall remain subject to merger control clearance and other customary conditions and shall be submitted to Lectra shareholders for approval.

The proposed combination would occur at an opportune time for both companies and their customers. The current uncertain economic climate and unprecedented challenges that fashion, automotive and furniture companies are facing due to the COVID-19 pandemic make it more important than ever for them to transform, digitalize and optimize their operations.

For over 50 years, Gerber Technology has used its proprietary technologies and deep domain expertise to provide integrated software and automated hardware solutions to companies around the world, including over 100 Fortune 500 companies in 134 countries.

The strategic combination of Gerber Technology and Lectra will create a premier advanced technology partner, able to quickly meet changing customer needs and deliver even more value through seamlessly integrated solutions. Together, the two companies will have a large installed base of product development software and automated cutting solutions in operation, with a worldwide presence and a long list of prestigious customers.

Consolidating the two companies’ research and development capabilities will enable the combined company to accelerate development of Industry 4.0 technologies and help its expanded customer base seize the full potential of these innovations.
Integrating the technology of the two companies will endow them with the resources to anticipate and address rapidly changing market conditions.

Key transaction terms

Under the proposed acquisition, Lectra would acquire all outstanding shares of Gerber Technology on a cash-free debt-free basis for an upfront payment of 175 million euros – through a combination of cash and debt – plus 5 million newly issued Lectra shares to AIPCF VI LG Funding, LP (“AIPCF VI LG”), an affiliate of American Industrial Partners that is Gerber Technology’s sole shareholder. This would represent a total amount of about 300 million euros based on Lectra’s closing share price on February 5, 2021. No contingent consideration is contemplated.

Gerber Technology’s revenues was 165 million euros in 2020.

Thanks to the strong value creation deriving from significant synergies, Lectra expects the transaction to be accretive for shareholders from 2022.

Upon closing, Daniel Harari would own c. 14.6% of the Lectra shares and AIPCF VI LG would own c. 13.3%.

Lectra’s Board of Directors would welcome a director representing AIPCF VI LG.

Daniel Harari would continue to be the Chairman and Chief Executive Officer of Lectra. Gerber Technology Chief Executive Officer, Mohit Uberoi, would assume special advisor to Daniel Harari role until end-2021.

Lectra’s shareholders would be invited to vote on the issuance of the 5 million new Lectra shares reserved to AIPCF VI LG at a dedicated Extraordinary Shareholders’ Meeting which is currently expected to be held on April 30, 2021. A report containing additional information will be made available to the shareholders prior to the Extraordinary Shareholders’ Meeting.

Lazard is acting as exclusive financial advisor to Lectra, and Latham & Watkins as legal counsel to Lectra.

Goldman Sachs is acting as exclusive financial advisor to AIPCF VI LG, and Ropes & Gray LLP, Baker Botts LLP and Gide Loyrette Nouel A.A.R.P.I. as legal counsel to AIPCF VI LG.

2020 results, update on the 2020-2022 strategic roadmap and guidance for the coming years will be disclosed on February 10, 2021.

Lectra management will discuss the transaction, provide forward-looking guidance for the combined company upon closing of the transaction and answer questions from the financial community during the February 11, 2021 webcast Analyst Conference meeting in French starting at 8:30 am (CET - Paris).

Royal DSM announces that its DSM Engineering Materials business will launch mass-balanced bio-based Arnitel®, a thermoplastic elastomer, together with Sympatex Technologies. In this way, DSM Engineering Materials is taking the next step on its sustainability journey and enabling its customers to transition to a more circular and bio-based economy.

To address growing consumer and legislative demand for lower carbon footprint and more sustainable feedstock, the sports and apparel value chain is increasingly integrating bio-based materials into its designs. By offering a new range of mass-balanced bio-based Arnitel®, DSM Engineering Materials is enabling membrane manufacturer, Sympatex Technologies to meet these demands and make more sustainable choices.

DSM’s bio-based Arnitel® is manufactured with bio-based feedstock using a mass-balance approach¹. The end product contains more than 25% bio-based content by weight.

Sympatex uses Arnitel® to manufacture its waterproof, windproof, and breathable membranes for sports applications. The transition to bio-based feedstock will maintain the unique functional properties of Arnitel® and will enable Sympatex to easily shift to a more sustainable solution with a lower carbon footprint without having to requalify materials.

¹ Mass balance accounting is a well-known approach that has been designed to trace the flow of materials through a complex value chain. The mass balance approach provides a set of rules for how to allocate the bio-based and/or recycled content to different products to be able to claim and market the content as ‘bio’-based or ‘recycled’-based. Source: Ellen MacArthur Foundation (Mass Balance White Paper).

International technology Group ANDRITZ has received an order from Lotus Teknik A.Ş., Turkey, to supply a neXline wetlace CP (carded pulp) line for the production of biodegradable, plastic-free wet wipes. Lotus Teknik A.Ş. is a leading nonwoven roll good producer and a member of the Sapro group. Sapro is based in Istanbul, Turkey, and is one of the top three producers of wet wipes globally.  

The neXline wetlace CP line is equipped with state-of-the-art stock preparation equipment, including approach flow and fan pump, opening and blending, TT card, wetlaid forming unit for pulp application, a hydroentanglement system, filtration unit, dewatering, and through-air drying. All components are perfectly designed to produce a first-class biodegradable wipe. The line is scheduled for start-up by the end of 2021.

ANDRITZ developed the new neXline wetlace CP line in order to serve the new market trend of sustainable wipes. Lotus Teknik supported the development from a roll goods producer and converter perspective. The partnership follows the successful installation of an ANDRITZ high-capacity spunlace line some years ago. The Wetlace CP new generation of production technology for biodegradable wipes has resulted from ANDRITZ’s extensive knowledge and considerable history of providing technologies for wood-based industries, spunlace and wetlaid roll goods, and the strong collaboration with Lotus Teknik.

• Webtalk on material efficiency and recycling for the manmade fiber industry

 
The next VDMA technology webtalk is scheduled for 9th February 2021 (2-4 pm CET). The focus will be on "Material efficiency & recycling technologies for the manmade fiber industry".

The presenters and their topics at a glance:

• Manfred Dobersberger, PureLoop and Wolfgang Hermann, EREMA Engineering Recycling Maschinen und Anlagen will present an integrated shredder extrusion technology for fibrous, textiles scraps, multilayers, films, trays, straps, foam, trays but also polymer mix materials from textiles and even classical thermoplastic composite materials.
• Axel Hannemann, company Gneuss, offers recycling solutions which enable the fibre manufacturer to use their otherwise worthless fibre waste to substitute virgin material in the manufacture of high-quality fibres.
• Markus Reichwein, Oerlikon Manmade Fibers: “We at Oerlikon Manmade Fibers describe a cascaded approach into new technologies as well as different material sources outlining your need for versatile solutions.”

After the presentations, the experts will be available to answer the participants' questions. Registration is possible.

Paper Converting Machine Company (PCMC) is pleased to announce that Andy Piotter has accepted the position of Business Development Manager, Packaging Systems.

In this role, Piotter will develop the company’s new packaging systems division, which will specialize in creating dynamic, comprehensive and efficient tissue packaging systems for customers around the world.

Piotter brings more than 35 years of experience in developing complete packaging systems for a variety of industries. He joins PCMC after being extensively involved in engineering, sales, and business management and development.

“Andy’s expertise and customer relationships are exactly what PCMC needs as we launch this new business segment,” said Jason Hilsberg, Tissue Sales Director for PCMC. “Creating comprehensive, effective and thoughtful packaging systems requires a unique understanding of technology, capital equipment and the ever-changing tissue environment—and Andy brings all of that, in addition to a passion for customer service. We’re thrilled to have him join our team.”

• DushaGreya is a well-known brand from talented Moscow-based designer, Natalia Dushagreya, who puts her all into her unique creations.

Combining her outstanding creativity with cutting-edge digital printing technology, Natalia has been delighting women with eye-catching, comfortable clothes, which boast unparalleled individuality and vivacity for several years. “The quality of digital prints surpasses that of traditional fabrics, both in the variety of colour compositions and in the contrast and clarity when printing small details or complex geometric elements. Digital technology makes it possible to achieve exceptionally smooth colour transitions, which is almost unattainable when using analogue printing methods. As a designer, I make sure to fully leverage the advantages of digital printing when designing and producing my collection”, says Natalia.

By the time the DushaGreya brand begun, Natalia and her like-minded associate and father, Alexander Kordovatov, already had experience in the field of sublimation printing and knew that printing on fabric for subsequent tailoring would be carried out using this technology. However, no third-party performers could be found that would meet the quality and deadline requirements of the brand, so they decided to purchase new equipment and start printing at their own site. 

Alexander says. “We also found out that Smart-T (Mimaki's distributor in Russia), the supplier of this equipment in Moscow, is highly rated by the industry community and customers due to its professional expertise, first-line service support, and highly qualified engineers.” At the end of 2019, Smart-T installed the highly anticipated Mimaki Tx300P-1800 direct textile printer at the DushaGreya facility. Today it prints fabrics for dresses, skirts, T-shirts, fleeces, jumpers, hoodies, trench coats, and other midwear.

"Mimaki Tx300P-1800 is the only printer in the Mimaki line that allows us to print on natural fabrics without pre-processing,” Alexander comments. “This gives us the ability to produce short, original print runs at no extra cost, which is vital in achieving our goals. The TP400 pigment inks used in this printer have an expanded colour gamut, so the prints are always bright and saturated.”

A polybutylene succinate (PBS) polycondensation system was commissioned at Yingkou Kanghui Petrochemical Co. Ltd. in Dalian in the Chinese Liaoning Province at the beginning of January 2021. The PBS system, for which Oerlikon Barmag Huitong Engineering supplied both equipment and engineering, has a daily production capacity of 100 tons

It is used to manufacture high-viscosity chips for biodegradable films. Consequently, Yingkou Kanghui, a subsidiary of the Hengli Group, is catering to rising demand for biodegradable polymer products – demand that is increasing not just in China, but across the globe. Yingkou Kanghui Petrochemical Co., Ltd., founded in 2011, predominantly produces polyester chips and films. By expanding its portfolio to include the manufacture of PBS products, the enterprise is positioning itself as a pioneer of biopolymer production: In view of the large quantities of plastic waste not just in the oceans, biopolymers are considered the materials of the future.

The new plant at Yingkou Kanghui Petrochemical Co, Ltd. was production-ready with the support of Oerlikon Barmag Huitong Engineering within less than 14 months following contract signing.

Order Intake Continued to Recover in the Fourth Quarter of 2020:

• Order intake increased to CHF 215.1 million in the fourth quarter of 2020 and reached a total of CHF 640.2 million in the 2020 financial year
• As expected, sales of CHF 573.0 million in the 2020 financial year were significantly down on the previous year
• EBIT margin of around -15% and net profit of around -16% of sales expected
• First half of 2021 still heavily impacted by the COVID-19 pandemic
• Change to the Group Executive Committee

Rieter posted a globally and broadly supported order intake of CHF 215.1 million in the fourth quarter of 2020. Thus, the recovery that began in the third quarter of 2020 after the slump in demand in the second quarter continued (order intake second quarter: CHF 45.7 million, third quarter: CHF 174.4 million). Overall, Rieter’s annual order intake for the 2020 financial year totaled CHF 640.2 million, which corresponds to a decrease of 31% compared to the previous year.

At the end of 2020, the company had an order backlog of about CHF 560 million (December 31, 2019: about CHF 500 million).

As expected, as a consequence of the economic effects of the COVID-19 pandemic, the Rieter Group closed the 2020 financial year with considerably lower sales than in the previous year. According to the first, as yet unaudited figures, total sales of CHF 573.0 million were achieved, which corresponds to a decrease of 25% compared to the previous year (2019: CHF 760.0 million).

Order Intake by Business Group
All three business groups were affected by the slump in demand in the second quarter of 2020 due to the COVID-19 pandemic. Despite the recovery in order intake in the third and fourth quarters of 2020, the weak second quarter was only partially offset.

The Business Group Machines & Systems was particularly hard hit by the effects of the pandemic, with a year-on-year decline of 35%. The Business Groups Components and After Sales each recorded a 24% reduction in order intake.*

Sales by Business Group
The exceptional market situation in 2020 gave rise to a significant decline in sales in all three business groups. Accordingly, reluctance to invest and deferred deliveries by customers caused sales in the Business Group Machines & Systems to decline by 24% compared to the previous year.

Due to COVID-19, a large number of spinning mills stopped production worldwide. This led to low demand for spare parts and wear parts, especially in the second and third quarters of 2020. Accordingly, compared to the previous year, sales in the Business Groups Components and After Sales fell by 24% and 27% respectively in the 2020 financial year.*

Sales by Region
With the exception of Turkey, all regions were affected by the low demand as a consequence of the COVID-19 pandemic.*

EBIT Margin and Net Profit
In the 2020 financial year, Rieter anticipates an EBIT margin of around -15% (2019: 11.2%) and net profit of around -16% of sales (2019: 6.9%). As of December 31, 2020, Rieter had liquid funds of exceeding CHF 280 million and unused credit lines in the mid three-digit million range.

First Half of 2021 Still Heavily Impacted by the COVID-19 Pandemic
Thanks to the improved capacity utilization, Rieter is planning short-time working in only a few areas in the first half of 2021. Nevertheless, Rieter expects sales in the first half of 2021 to be below the break-even point.*

Change to the Group Executive Committee
With effect from March 1, 2021, the Board of Directors of Rieter Holding Ltd. has appointed Roger Albrecht as Head of the Business Group Machines & Systems and a member of the Group Executive Committee.*

Annual General Meeting April 15, 2021
The 2021 Annual General Meeting of Rieter Holding Ltd. will take place in Winterthur on April 15, 2021.*

*See attached document for more information.

Tobias Staehle übernimmt Endverbrauchergeschäft (EMEA) bei Freudenberg Home and Cleaning Solutions (FHCS) und wird neuer Regional President EMEA Consumer. Er tritt zum 1. Februar 2021 die Nachfolge von Juan Dangla an, der nach 33 Jahren bei FHCS in den Ruhestand gehen wird. In seiner neuen Funktion verantwortet Staehle das Endverbrauchergeschäft des Weinheimer Unternehmens, zu dem Haushaltsmarken wie Vileda, Gimi, Wettex und Marigold gehören. Staehle berichtet an Karin Overbeck (CEO).

„Mit Tobias Staehle haben wir einen sehr erfahrenen Manager gewinnen können. Er wird einen wichtigen Beitrag dazu leisten, das Wachstum in unserer umsatzstärksten Region voranzubringen und nachhaltig zu sichern“, kommentiert Overbeck. Staehle ergänzt: „Mein Fokus wird sein, Marktanteile im Kerngeschäft zu gewinnen sowie neue Wachstumsfelder für das Markenportfolio zu identifizieren. Dabei werden die Themen Hygiene und Nachhaltigkeit eine wichtige Rolle im Marketing und der Entwicklung spielen.“

Staehle ist seit November 2020 bei FHCS und blickt auf 20 Jahre Vertriebs- und Marketing-Erfahrung in der Konsumgüterindustrie zurück. So hatte er Führungsrollen auf nationaler, regionaler und globaler Ebene inne, unter anderem bei den namhaften Markenherstellern Wella, Kao und Procter & Gamble. Zuletzt verantwortete er als Managing Director bei Revlon das Geschäft in Deutschland, Österreich und der Schweiz.

Hexcel is pleased to announce Type Approval Certification of its HexPly® M9 prepreg materials by DNV GL. The addition of the HexPly M9 prepreg range to Hexcel’s already comprehensive DNV GL certified portfolio provides ship and boat builders with optimal prepreg processing options.

HexPly M9 prepregs enable short cure cycles at 100˚C and above and provide a balance between ease of processing and mechanical performance. Available in high tack and medium tack variants, HexPly M9 prepregs are available with a wide range of unidirectional, woven, and multiaxial reinforcements. Partnered with Hexcel’s own HexTow® IMC2 and HexTow® HM54 / HM63 fibers, designers and engineers can optimize highly loaded composite structures such as masts, wing sails, and foils with increased glass transition temperatures (Tg) and excellent long-term fatigue performance.
 
Hexcel has completed the DNV GL certification for HexPly M9 in response to the rapidly increasing demand for type-approved high-performance prepreg materials for large composite structures in the commercial marine craft.  

Hexcel’s collaboration with Chantiers de l’Atlantique on its new Silenseas cruise ship concept – a concept that uses composite Solid Sail® propulsion as well as dual-fuel engines to reduce emissions and operating costs – is one such application. In this case, DNV GL type approval provides third-party assurance of the product’s quality, performance and consistency, and also helps to streamline the approval of composite parts that replace traditionally metallic structures.

Hexcel has supplied advanced composite materials to the marine industry for more than 40 years and manufactures a comprehensive range of DNV GL certified products including woven reinforcements, multiaxial fabrics, prepregs, and adhesive films. Hexcel is committed to developing new composite technologies for the marine sector, helping builders evolve their designs to produce lighter, more fuel-efficient, and a sustainable craft for the future.

“Our latest Type Approval Certification is an important part of our strategy to provide the most complete package of DNV GL certified composite materials for the marine sector,” said Andreas Sageder, Product Manager at Hexcel. “With the addition of our M9 prepreg resin systems, mast, ship, and boat builders have an expanded range of processing and cure options available for parts requiring higher Tg and improved fatigue performance.”