Oerlikon, a leading technology and engineering group, intends to publicly list its Drive Systems Segment by way of an initial public offering (IPO) on the SIX Swiss Exchange during the third quarter of 2018, subject to capital market conditions. As announced on March 6, 2018, Oerlikon has been evaluating all strategic options for its Drive Systems Segments, including an IPO. Oerlikon has finally opted on June 15, 2018, to proceed with the IPO.
The IPO is expected to consist of a secondary offering of 87 % of the shares in the to-be-listed company, GrazianoFairfield AG, and up to 100 % if the over-allotment option (greenshoe) is exercised in full.
“The carve-out of the Drive Systems Segment leads to a stronger focus on our surface solutions and manmade fibers businesses, resulting in a better position to invest in further growth, both organically and through targeted acquisitions,” said Dr. Roland Fischer, CEO Oerlikon Group.
“The Drive Systems Segment has advanced its business in its end markets with an aim for long-term sustainable profitable growth,” said Dr. Bernd Matthes, CEO Drive Systems Segment. “We have established strong underlying fundamentals in terms of a streamlined innovative technology portfolio, better focus on our markets and customers, and an engaged team. We are excited to steer our business independently in the future, focusing on our customers while aiming to operate successfully in established and attractive end markets. We will continue to innovate products and solutions, as well as improve aftermarket and customer services,” he added.
Following the IPO, the Drive Systems Segment will begin to operate under the new name of GrazianoFairfield, with global headquarters in Switzerland. The integration of two leading brands – Graziano and Fairfield – into an independent, integrated business is the logical next step to fully leverage their heritage and value. Dr. Bernd Matthes will be designated CEO of GrazianoFairfield AG, and Dr. Jürgen M. Geißinger will be designated Chairman of the Board of Directors.
Based on nearly 100 years of experience, the Drive Systems Segment is a global leader in providing high-performance gears, market-leading shifting solutions, power transfer units (PTUs), differentials and planetary drives, as well as innovative solutions for hybrids and e-drives. In 2017, the Drive Systems Segment generated CHF 730 million in revenues, CHF 78 million in EBITDA (EBITDA margin: 10.6 %), and employed over 5100 employees worldwide. Leveraging the secular trends of increasing demand for smarter mobility, improved energy efficiency and higher product standards, the Drive Systems Segment has established a strong base of customers in the agriculture, automotive, transportation, construction and energy (oil & gas/mining) industries.
For the planned IPO, UBS is acting as the Sole Global Coordinator and Bookrunner. Berenberg, Jefferies, Vontobel and Zürcher Kantonalbank are acting as Co-Bookrunners. The syndicate also includes Kepler Cheuvreux and MAINFIRST as Co-Managers, and Octavian as Selling Agent.
The envisaged offering is expected to consist of a public offering in Switzerland and private placements in Switzerland and internationally, including to qualified institutional buyers in the US under Rule 144A.