Hochdorf, a player in the food and beverage industry, has shifted its focus towards selling its entire production business in Switzerland for baby food and ingredients. Following the announcement in March regarding a potential sale or partial disposal of its manufacturing business, subsidiary Hochdorf Swiss Nutrition (HSN) is now up for grabs.
At the top of the corporate structure is Hochdorf Holding, housing the Hochdorf Group with its infant nutrition and food solutions units. These divisions were consolidated into HSN in 2015, covering activities in Switzerland and export business. Ahead of their annual general meeting, Hochdorf confirmed that sales discussions are centered on selling HSN while ensuring the financing of the operational business remains secure.
Hochdorf has undergone several reorganizations in recent years, including the sale of various businesses and manufacturing plants. A review of its group business strategy in 2019 led to the disposal of a majority stake in the baby-food subsidiary Pharmalys and other non-core businesses.
Hochdorf has been asked to clarify the business that will remain within the holding entity and the group if the sale of HSN goes through. The company lists multiple business units under Hochdorf Holding in Germany and a division in Uruguay, with major shareholders including Amir Mechria and Tunis Tunesia. Despite facing financial challenges, Hochdorf reported a reduced net loss in the last fiscal year.
The sale talks have indicated a lack of interest in acquiring the entire Hochdorf Group, leading to a focus on selling HSN as a viable solution. The company is exploring various scenarios, including the potential dissolution of Hochdorf Holding, warning shareholders of a possible loss.
The group’s divisions specialize in infant nutrition and food solutions, with operations spanning multiple countries. HSN processes vegetable proteins for milk alternatives and produces condensed milk. Sales performance in the past year saw growth, with positive EBITDA reported.
Despite operational progress, Hochdorf acknowledges the financial challenges posed by its complex financing and capital structure. The company faces difficulties in meeting legacy burdens, especially concerning a 2017 hybrid bond and rising interest rates.
Overall, Hochdorf’s strategic shift towards divesting its Swiss operations reflects a strategic move to streamline its business operations and address financial challenges in a competitive market landscape. With a focus on securing the operational business and exploring potential sales opportunities, Hochdorf is navigating through a period of transition and evolution within the food and beverage industry.
