Ad hoc announcement of the HOCHDORF Holding Ltd pursuant to Art. 53 LR
Hochdorf, 16 December 2021 – The Board of Directors of HOCHDORF Holding Ltd and the Foundation Board of the HOCHDORF Pension Fund have agreed to sell land and buildings to the municipality of Hochdorf for a total of CHF 60.2 million. The completion of the transaction was agreed for 30 December 2021 and will have a positive impact on the annual results of the HOCHDORF Group. A revised EBIT of CHF 7 to 12 million is anticipated.
At the end of August, the HOCHDORF Group announced a far-reaching restructuring of the group and its intention to concentrate production at the Sulgen site, with the corresponding sale of land and buildings in Hochdorf. In mid-November, the company further announced that the Hochdorf municipality had been invited to the final round as one of the preferred buyers. At their meetings, the Board of Directors of HOCHDORF Holding Ltd and the Foundation Board of the HOCHDORF Pension Fund decided to award the contract to the Hochdorf municipality on the basis that it had submitted the best bid. Representatives of HOCHDORF Holding Ltd and the Foundation Board signed the sales agreement today. The transaction is expected to be completed as per 30 December 2021.
HOCHDORF site sold for CHF 50.2 million
A purchase price of CHF 50.2 million was agreed for the HOCHDORF Group's land and buildings. The HOCHDORF Pension Fund site changes hands for just under CHF 10 million. At the same time the HOCHDORF Group has signed a four-year rental agreement with the option of extending by a year. The annual rental price was set at CHF 3 million. As announced at the end of August, the proceeds from the HOCHDORF Holding sale will be used largely to reduce the group's debt.
The negotiating partners are delighted that the agreement has been concluded. "We have found an ideal buyer for the site and its long-term development in the Hochdorf municipality because we are keen to keep our main headquarters and service areas in Hochdorf," says Peter Pfeilschifter, CEO of HOCHDORF Swiss Nutrition Ltd. Mayor Lea Bischof emphasised that sustainable planning for the future could now begin: "The purchase of the site is a unique opportunity for the further development of Hochdorf as a centre," says Lea Bischof.
Impact on the annual results for 2021
The income from the sale as well as planned provisions for costs in connection with the plant closure in Hochdorf will influence the end-of-year forecast issued by the HOCHDORF Group. The net sales revenue predicted at CHF 260 to 300 million will be achieved at the higher end. At the EBIT level, the company anticipates results in the range of 7 to 12 million. In addition to the profit from the sale of the property, this result is also influenced by a significantly higher milk price.
The successful sale of the site is an important step towards equipping the company for the future and placing it on a solid economic footing. HOCHDORF wants to continue its development into Switzerland's technology leader for "smart nutrition" solutions and sees a great opportunity in the globally growing market for high-quality, functional foods and semi-finished products.
About the HOCHDORF Group
HOCHDORF Group, which is listed on the Zurich Stock Exchange, achieved a consolidated net sales revenue of CHF 306.2 million in 2020. It is one of the leading foodstuff companies in Switzerland, employing 391 staff as of 31.12.2020. HOCHDORF is known for advanced processing expertise for high-quality raw materials, state-of-the-art production technology and the market-focused nutrition know-how of its employees. The company is therefore unique on the global market as a developer, manufacturer and marketer of specialist foods for people of all ages with specific nutritional requirements. Its portfolio offers solutions ranging from high-quality semi-finished products for the processing food industry to consumer products in the sensitive infant formula segment.