In the wake of insolvency proceedings, Volker Böhm, the provisional insolvency administrator for the Ziegler Group, has initiated an investor search for the group's companies. The process is being conducted through a "structured investor process," where potential buyers—both national and international—are carefully identified and approached. The process will follow a multi-stage approach to select the best future partners, while also considering self-initiated interested parties.
Photo: Ziegler Group.
Böhm has reported that since the start of the provisional insolvency administration, several parties have expressed interest in acquiring various Ziegler companies, signalling a strong market interest. He emphasised, 'This is an important indication for the further investor process, as it shows the fundamental interest that exists in the market.' Böhm's primary goal is to secure investor solutions for as many Ziegler companies as possible to preserve the businesses and retain jobs. Ongoing negotiations with existing interested parties will continue as the investor search progresses. The insolvency proceedings allow potential investors to take over parts of the Ziegler Group "unencumbered," meaning without assuming liabilities.
To assist with the investor search, Böhm has engaged international consultancy firm PWC as an "M&A advisor." PWC has already begun its work and is set to approach potential investors in the near future. Böhm stressed the importance of finding the right investors to ensure that Ziegler Group companies remain competitive and successful in the long term. He expressed confidence that some companies within the group have good future prospects with the right investor.
In order to streamline the process for potential buyers, Böhm has started unbundling the complex structure of the Ziegler Group, while continuing to assess the financial situation of each individual company. 'An overall sale of the group is conceivable,' Böhm stated, but noted that various business areas within the group might attract different investors. He acknowledged that it is likely that multiple investors will become involved.
Böhm's team is focused on achieving the best possible outcome for creditors, employees, and the surrounding region for each company. In the meantime, efforts will be made to maintain as much business activity as possible while the sales process continues. Measures to stabilise the operations of the insolvent companies will be implemented where needed, provided conditions allow.
Meanwhile, five additional Ziegler companies have filed for insolvency, including two logistics subsidiaries, "Ziegler Logistik GmbH" (around 300 employees) and "Ziegler Global Logistics GmbH" (around 15 employees), as well as the construction company "Engelhardt + Geißbauer GmbH" (around 80 employees). The Ziegler packaging subsidiary "ZG Distributionsgesellschaft mbH" (around 5 employees) has also filed for insolvency.
Böhm plans to continue the operations of these companies during the preliminary insolvency proceedings and restructure them through investor solutions. Serious interest has already been shown for Engelhardt + Geißbauer GmbH.
The Ziegler Group, with 3,000 employees across Germany, Sweden, and Romania, was severely impacted by the downturn in the construction sector, partly due to the war in Ukraine and rising interest rates. In 2023, despite weak market conditions, the group generated sales of approximately €750 million.
Source: www.moebelfertigung.com