In another move to systematically focus the portfolio, Oerlikon has divested the Textile Segment’s Melco business to a newly established Melco International LLC, a subsidiary of Mizar Holding Company, Inc., US. The parties have agreed not to disclose the sales price. Melco’s staff of roughly 50 employees will be retained and transferred with the business.

Melco, the smallest Oerlikon Textile business area, produces specialized single-head embroidery machines primarily for non-industrial customers. This is a niche business for the Textile Segment.

In 2011, Melco reported sales of about CHF 15 million and was profitable. The agreement was signed and the transaction closed on June 29, 2012, effective June 30, 2012. The buyer, Mizar Inc., based in Illinois, US is a group of companies focused on the textile sector.

Oerlikon CEO Michael Buscher said: “The divestment of Melco represents another step in our efforts to refocus our portfolio toward areas with volume and growth potential. We are confident that the new owner offers Melco an environment in which it can flourish going forward.”