Hochdorf sells Pharmalys stake
The Hochdorf Group in Switzerland has sold its 51% majority stake in the Pharmalys Group acquired at the end of 2016 to Pharmalys Invest Holding, which is controlled by Amir Mechria.
This is an important step towards financial recovery and increases strategic flexibility, according to Hochdorf. However, collaboration between the Hochdorf Group and the Pharmalys Group is continuing, and Pharmalys Invest Holding remains the largest shareholder of the Hochdorf Group.
The Hochdorf Group bought a 51% stake in three companies in the Pharmalys Group in 2016, hoping to accelerate its baby care business. However, the Pharmalys business model did not provide the Hochdorf organs with much transparency and influence on relevant parts of the value added chain. In addition, the financing of Pharmalys proved to be extremely capital intensive.
After examining various options, the shares of Pharmalys were sold. The agreement to sell the 51% stake in Pharmalys Laboratories SA, Pharmalys Africa Sarl and Pharmalys Tunisia SA to Pharmalys Invest Holding was signed in early December 2019.
Despite the sale, the focus of the Hochdorf Group remains on its high-growth baby care business unit, the company confirms. In marketing, Pharmalys intends to continue to rely on Swiss baby food produced by Hochdorf. In its own sale of baby food to end consumers, Hochdorf will in future increasingly work with the traditional Swiss brand Bimbosan and with the Babina brand.
With the sale of Pharmalys investment, the Hochdorf Group says it is taking an important step towards financial recovery. However, a significant negative result is expected for the current financial year.
