Hochdorf's Crisis: Can AS Equity Partners Revive the Swiss Food Industry?

Wednesday, 18 September 2024, 23:40

Hochdorf, the struggling Swiss dairy processor, aims to secure its future through the sale of its operational business. The shareholders will decide whether to accept the proposal from AS Equity Partners, which could potentially safeguard production and over 300 jobs. Despite the sale, shareholders may face losses due to outstanding debts.
Watson
Hochdorf's Crisis: Can AS Equity Partners Revive the Swiss Food Industry?

Hochdorf's Operational Business Sale

Hochdorf, once a leader in the food sector, is in a critical position as it looks to mitigate its financial woes. On Wednesday, shareholders are set to decide on the sale of its operational business, primarily known for the Bimbosan brand, to the Swiss-British private equity firm AS Equity Partners for 83 million CHF.

Impacts of the Sale

  • Over 300 jobs at risk without successful sale
  • Investors may face significant losses due to high debts
  • Heirloom Bimbosan brand is pivotal to Hochdorf's identity

The current board considers this sale to be a necessary step. This decision follows the rejection of an offer from Italian company Newlat and previous failed attempts by major stakeholders to influence board appointments. If the sale proceeds, CEO Ralph Siegl's team is expected to continue producing baby food and dairy products like milk protein and whey powder, aiming to regain market share lost due to earlier missteps, including the problematic acquisition of Pharmalys.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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