Hochdorf Group is selling its operating business and entering debt-restructuring moratorium. Swiss-British private equity company AS Equity Partners has signed an agreement to acquire Hochdorf Swiss Nutrition (HSN). HSN will thus be separated from the Hochdorf Group and continue to operate under the new ownership. The Board of Directors has decided to accept AS Equity Partners’ offer to acquire HSN “after careful consideration of several sale options”, according to a statement. Hochdorf’s operating business is valued at CHF83m. However, Hochdorf still has an outstanding syndicated loan of CHF67m, which will be assumed by the buyer. After deducting this amount, CHF15.5m will flow to Hochdorf Holding as proceeds from the sale, according to the press release.
The proceeds from the sale will not be enough to ‘settle the considerable financial liabilities, in particular the hybrid bond issued in 2017 totalling CHF125m and the associated outstanding interest payments’, the press release continues. In addition, with the sale agreement, the holding company must fully write off the intercompany loans granted to HSN years ago totalling CHF182m in the balance sheet as at the end of June 2024. This would lead to over-indebtedness in the individual financial statements of Hochdorf Holding. An application for a provisional debt-restructuring moratorium and the appointment of an administrator has therefore been submitted for the holding company.
However, the deal still has to be approved by the shareholders. Hochdorf has therefore convened an Extraordinary General Meeting for 18 September 2024.
The renaming of Hochdorf Holding and the delisting of the shares from the Swiss stock exchange will also be proposed there.
