StarragTornos Group AG Merger and Capital Increase: Latest Updates and Future Prospects

2023-11-29 17:53:03

Zurich (awp) – The shareholders of the St. Gallen group Starrag approved the merger with the machine manufacturer Tornos on Wednesday during an extraordinary general meeting. The other points on the agenda were also validated, in particular the capital increase and the integration of the directors of the Provost company into the new entity.

“The merger creating StarragTornos Group AG paves the way for a strong new group, which will participate in the future of the machine tool industry globally,” Starrag underlined in a press release. Tornos shareholders must give their approval to the marriage on Thursday.

The unit holders also approved the creation of new shares with a capital increase of 17.9 million Swiss francs, through the issue of 2.1 million new registered shares with a unit value of 8.50 Swiss francs. .

These new securities will be used for a securities exchange with Tornos, whose shareholders will receive for each security held with a nominal value of 1 franc 0.1059 Starrag shares with a nominal value of 8.50 Swiss francs.

Tornos directors François Frôté, Till Fust and Michel Rollier will also join the StarragTornos Group supervisory body.

At the end of October, the machine manufacturers Starrag and Tornos, both owned by entrepreneur Walter Fust, announced that they were merging their activities under the name StarragTornos Group.

The merger will not lead to any site closures or job cuts, said Michael Hauser, CEO of Tornos and president of Starrag, who will manage the future entity. The geographical distribution of production between the two companies is largely complementary. Acquisitions might also be considered.

The merged group will be headquartered in Rorschacherberg, home of Starrag, in the canton of St. Gallen.

On a pro forma basis, the two firms – present in around fifteen countries with 2,000 employees – together recorded last year a turnover of 499 million Swiss francs, an operating profit (Ebit) of 29, 6 million and a net profit of 20.8 million. In the medium term, they expect annual sales growth of around 5% on average and an Ebit margin of around 8%.

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