Georg Fischer soars on sale of machining solutions business
30/10/2024 08:53
** Swiss industrial company Georg Fischer GF.S shares
surge 15.6% after announcing the sale of its machining solutions
business to United Grinding Group
** The divestment deal, valued between CHF 630m-650m, allows
Georg Fischer to exit a volatile, cyclical business, according
to Vontobel
** Vontobel mentions that the company will now focus on its
water and flow solutions business, a less cyclical area with
potential for growth, especially after its recent acquisition of
Uponor
** Despite a cut in FY24 guidance, Vontobel believes the
company's simplification of its business model and focus on an
attractive field will outweigh this reduction
** Georg Fischer sees its best day on 16 years, since
September 2008, on top of the Swiss mid-cap index .SMIM
(Reporting by Elizaveta Gladun)
((elizaveta.gladun@thomsonreuters.com))