ZURICH, June 15 (Reuters) - Swiss technology group OC Oerlikon will sell shares of its drive-systems business that makes transmissions for Lamborghini and Ferrari in an initial public offering (IPO) as it focuses on surface-solutions unit and textile machinery, the company said on Friday.
Oerlikon said the IPO, planned for the third-quarter of 2018, would comprise 100 percent of the shares in the new business to be called GrazianoFairfield, if the over-allotment is exercised in full.
The drive-systems segment is Oerlikon’s second-biggest after its surface-solutions business. The division includes Italian Graziano unit that makes components for sports cars and tractors, as well as the U.S.-based Fairfield Manufacturing unit, with operations in India and China, that manufactures gears and custom-drives for construction, mining equipment and oil and gas production.
Operating margins from GrazianoFairfield have been slimmer compared with Oerlikon’s surface-solutions business.
“The carve-out of the drive-systems segment leads to a stronger focus on our surface solutions and manmade fiber businesses, resulting in a better position to invest in further growth, both organically and through targeted acquisitions,” Oerlikon Chief Executive Roland Fischer said.
Oerlikon is seeking to take advantage of the timing to maximize the IPO’s value, as the drives unit is picking up pace after a tough patch.
Sales in the custom-drives division, in the first three months of 2018, surged 23 percent to 209 million Swiss francs ($209.57 million).
The company’s profit margin from its drives unit came in at 12.4 percent, up from 8.4 percent in the first quarter of 2017, but below the 19.1 percent margin of the surface-technology business.
Bernd Matthes will be CEO of GrazianoFairfield, while Jürgen M Geissinger will be the chairman, Oerlikon added.
UBS will be the sole global coordinator and bookrunner, while Berenberg, Jefferies, Vontobel and Zuercher Kantonalbank are appointed as co-bookrunners. The syndicate also includes Kepler Cheuvreux and MAINFIRST as co-managers.
$1 = 0.9973 Swiss francs Reporting by John Miller, Editing by Sherry Jacob-Phillips