The Oerlikon Group, Switzerland, announces the successful closing of the transaction to acquire Metco from Sulzer AG ahead of schedule. After having received all required merger control approvals, the parties were able to close the transaction on June 2, 2014. Oerlikon Balzers and Oerlikon Metco now form Oerlikon’s Surface Solutions Segment. Oerlikon Balzers is the global technology leader in the service-driven PVD Thin Film business. Oerlikon Metco is the global technology leader in the Thermal Spray and surface applications business.
Oerlikon Metco will access Oerlikon Balzers’ well-established and highly successful service approach to further grow the Thermal Spray service business. Oerlikon Balzers’ proven ability to replicate successful market penetration is a key enabler for acceleration of the Thermal Spray and Plasma Nitriding services and rapid geographic expansion – especially in emerging markets.
The combination will expand Oerlikon’s addressable growth market in surface solutions to some CHF 9 billion. The two businesses are complementary in terms of their technological strengths, business models, market access, and geographical footprint, enabling them to increasingly meet customer requirements in the years to come. The combined businesses will operate some 130 facilities with over 110 coating centers in 35 countries around the world, employing around 6000 people.
Oerlikon is convinced that the combination provides substantial growth potential, significantly outperforming global GDP by exceeding growth rates of underlying markets. In addition to the integration of the two businesses, the key priority is to unfold the top-line opportunities. This is a multi-year agenda, as for example qualification processes in industries such as aviation or automotive normally take years, and changing a business model towards service business requires some time.
