HOCHDORF Holding Ltd: Sale of Uckermärker Milch GmbH

[ Report ]

Hochdorf (pta028/26.02.2020/18:00) - HOCHDORF is selling its majority shareholding of 60 percent in Uckermärker Milch GmbH to Ostmilch Handels GmbH, which previously held 40 percent of the shares. The sale is moti-vated by the company's strategic focus on its Baby Care and Dairy Ingredients divisions, with Swiss production sites. The sale will be completed with the closing date on Friday 28.02.2020.

HOCHDORF Holding Ltd acquired a 60% holding in Uckermärker Milch GmbH at the beginning of 2015. HOCHDORF anticipated using the plant to make infant formula, as well as other products, for Europe and the Central and South American markets. With subsequent sales of Swiss-made infant formula showing unexpectedly strong growth, the additional production capacities required were achieved in Switzerland.

Lack of strategic importance for HOCHDORF
The decision to build spray tower line 9 and the resulting increase in capacities at the Sulgen site in Swit-zerland meant that the holding in the Uckermärker Milch GmbH 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.

The contract signed today makes Ostmilch Handels GmbH the sole owner of Uckermärker Milch GmbH. "We are delighted to be able to hand over the plant to our partner Ostmilch Handels GmbH in sound condition," says Dr Peter Pfeilschifter, CEO of the HOCHDORF Group. With the sale of the milk plant, the HOCHDORF Group's Dairy Ingredients division is focussing on production in Switzerland. The transaction is expected to be completed on Friday 28 February 2020.

(Ende)