Swiss group Hochdorf, reshaping its business to focus on baby food and dairy ingredients, is selling its stake in German manufacturer Uckermärker Milch.
Hochdorf acquired 60% of Uckermärker Milch in 2015, planning to use the Prenzlau-based business to manufacture infant formula to sell in Europe and parts of the Americas.
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The company said its “strategic focus” on baby products and dairy ingredients based on production in Switzerland had prompted the sale of the Uckermärker Milch shares to German venture partner Ostmilch Handels. Financial terms were not disclosed.
“With subsequent sales of Swiss-made infant formula showing unexpectedly strong growth, the additional production capacities required were achieved in Switzerland,” Hochdorf said in a statement.
The … increase in capacities at the Sulgen site in Switzerland meant that the holding in the Uckermärker Milch lost its strategic importance for the Hochdorf Group. Numerous capacities for producing infant formula have also been developed in the EU in recent years, which meant that medium and long term investment in Prenzlau was no longer an option for Hochdorf and a buyer was sought for this plant.
Last week, the loss-making Hochdorf revealed its board of directors is to be recomposed at its next annual general meeting.
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By GlobalDataThe company has had a difficult 18 months after announcing profit warnings and then recording losses, undergoing re-financing and restructuring initiatives and changing its CEO. In May, Hochdorf launched a business review and in August it said it was “in the grip of a serious crisis”.
