Hochdorf Holding sells stake in Pharmalys Group companies for $101m

Switzerland-based food company Hochdorf Holding has sold its 51% stake in food products supplier Pharmalys Group to Pharmalys Invest Holding in a deal valued at CHF100m ($101m).

Hochdorf Holding acquired a stake in companies within the Pharmalys Group at the end of 2016. It has agreed to sell them in order to expand its baby care business.

This move is in line with Hochdorf Holdings’ plans for financial recovery and increased strategic flexibility. The company examined several options before moving ahead with this deal.

Hochdorf Holding will sell the stake in Pharmalys Laboratories, Pharmalys Africa Sarl and Pharmalys Tunisia.

With this acquisition, Pharmalys Invest Holding will become the largest stakeholder shareholder of the Hochdorf Group.

Following the divestiture, Hochdorf Holding expects its financial position will improve.

Upon completion of the deal, Pharmalys noted that it intends to continue marketing the Swiss baby food produced by Hochdorf.

Pharmyls and Hochdorf expect the deal to be completed in the next few days. They are making the consideration in multiple instalments until September next year.

Hochdorf Holding will continue to focus on its baby care division after the sale of its shares.

Going forward, the company will work with the traditional Swiss brand Bimbosan and the Babina brand.

In November 2017, Hochdorf acquired production company Zifru Trockenprodukte, Zittau, and Snapz, the children’s food brand, for an undisclosed sum.

Following the acquisition, the company expanded its product portfolio in its cereals and ingredients division.