Starrag Group Holding AG (SWX:STGN) entered into a merger agreement to acquire Tornos Holding AG (SWX:TOHN) for approximately CHF 100 million on October 25, 2023. Pursuant to transaction, 1 share of Tornos will be exchanged to 0.1059 Starrag shares. As a result of the merger, Starrag Group will absorb Tornos, registered shares of Tornos will be delisted and Starrag Group to be renamed StarragTornos Group Ltd. After the merger, the existing Starrag and Tornos shareholders will hold 61.5% and 38.5% of the combined group.

Michael Hauser intended to become Chairman and CEO of StarragTornos Group Ltd. The merger has been approved by the Boards of Directors of Starrag Group and Tornos. The transaction is subject to shareholders? approval of Starrag and Tornos to vote on merger agreement the extraordinary general meetings to be held on November 29 and 30, 2023 respectively. The merger is expected to be completed on December 7, 2023. The new StarragTornos Group expects sales synergies in the range of CHF 10 to 15 million in the medium term as a result of the merger. The expected cost synergies, in particular from higher purchasing volumes, optimized infrastructure costs and efficiency gains in logistics and distribution, are estimated at CHF 5 to 10 million. The merger is expected to have a positive impact on profit from 2025 onwards. As of November 29, 2023, Starrag shareholders approved the transaction.

Zürcher Kantonalbank acts as financial advisors on this transaction. IFBC AG provided fairness opinion to the board of Starrag Group and Tornos. Matthias Oertle, Astrid Waser, Stephan Brandner, Franziska Stadtherr-Glättli, Patrick Schärli, and Matthias Wolf of Lenz & Staehelin acted as legal advisor to Starrag Group.