According to a report by Finanz und Wirtschaft, the long-established industrial group Georg Fischer (GF) is undergoing significant reforms. The Machining Solutions division has been sold, and the sale of the Molding Solutions division is also being considered.
Following its acquisition of Uponor in 2023, GF is making another major strategic shift. On Wednesday, GF announced the sale of its Machining Solutions division (formerly known as AgieCharmilles). The buyer is United Grinding Group, which is controlled by Rosmarie and Martin Ebner’s Patinex AG.
The valuation of GF’s Machining Solutions division is estimated to be between 630 million and 650 million Swiss francs. If the necessary approvals are obtained, the transaction is expected to be completed in the first half of 2025. United Grinding Group is a market leader in grinding technology, employing over 2,000 people globally.
At the same time, GF is exploring potential buyers for its Molding Solutions division, which is primarily active in the automotive sector. Until then, all business activities of the Molding Solutions division will remain unchanged, and the strategic goals for 2025 are still valid. If the Molding Solutions division is also sold, GF’s size will significantly shrink, with an estimated loss of about 45% from its sales of over 4 billion Swiss francs in 2024.
In the future, GF will focus on water and fluid solutions in the industrial, infrastructure, and construction sectors. This business includes the Pipe Systems division and the Building Fluid Solutions division, the latter of which was established after the acquisition of Uponor and focuses on water delivery for urban, building, and household applications.
According to GF’s press release, the targeted adjustment of the company’s portfolio will allow it to make the most effective use of existing growth opportunities. The divestiture of the machining business enhances the company’s flexibility to seek further growth and value-added investments in the water and fluid solutions business.
Amidst these upheavals, GF has described 2024 as a year of transformation, characterized by the ongoing integration of Uponor and other key strategic projects, as well as strong headwinds in the construction and automotive sectors. The company is also discussing the postponement of several industrial projects. Consequently, the previously set goals for 2024 have been canceled. Organic sales growth is now expected to remain flat, with an operating profit margin (EBIT) of approximately 9%, down from the previous target of 10-12% on a comparable basis. Despite these challenges, GF still expects to achieve “solid performance.”