On November 20, 2024, Ziegler Holding Company, one of Germany's largest wood processing groups filed for bankruptcy. In the insolvency proceedings concerning the Ziegler Group, the provisional insolvency administrator, Volker Böhm from law firm Schultze & Braun, has initiated the search for investors for Ziegler Group companies.
In recent years, Ziegler Group embarked on an aggressive growth course, not least through acquisitions. In addition to its core business of sawmilling- and wood processing for the construction industry, the Ziegler Group became active in logistics, wood pellet production, forestry, house and modular construction, and related trades such as building services.
However, in the midst of its growth phase, the group was hit hard by the collapse in demand in the construction sector as a result of the war in Ukraine and the rise in interest rates.
According to its own information, the Ziegler Group employs around 3,000 people in three countries – Germany, Sweden, and Romania – and generated group sales of around EUR 750 million in 2023 in weak markets.
Fundemental market interest
In the insolvency proceedings concerning the Ziegler Group, the provisional insolvency administrator, Volker Böhm from Schultze & Braun, has initiated the search for investors for the companies of the Ziegler Group.
Volker Böhm uses a so-called “structured investor process” whereby possible national and international buyers are identified and specifically approached.
This is followed by a multi-stage process in which the best future partners for the companies concerned are selected, with potential buyers who come forward on their own initiative also being taken into account.
Since the start of the provisional insolvency administration, a number of interested parties have already contacted us for a whole series of Ziegler companies. This is an important indicator for the further investor process, as it shows the fundamental interest that exists in the market, said Volker Böhm.
His goal is to develop investor solutions for as many of the Ziegler companies as possible to preserve the companies and as many of the respective jobs as possible.
In parallel to approaching new investors, discussions with existing interested parties will continue. The insolvency proceedings enable potential investors to take over parts of the Ziegler Group “free of encumbrances”, i.e. without assuming liabilities.
PWC appointed M&A consultant
In coordination with the creditors, Böhm has commissioned international consulting firm PWC as a “Mergers & Acquisitions consultant” to accompany the investor process. PWC has already started work and will begin approaching the market shortly.
The companies of the Ziegler Group need an investor so that they can survive in the market as competitive and successful providers in the long term. I am convinced that some companies have good future prospects with the right investor, explained Volker Böhm.
To make it easier for investors to get involved, the provisional insolvency administrator has already begun to unravel the complex corporate structures of the Ziegler Group.
This is in parallel with the ongoing review of the economic situation of each individual group company.
A total sale of the group is conceivable. However, there are a number of different business areas in the group that we assume will be of interest to different investors, added Volker Böhm.
It is quite possible that several investors will therefore come into play, and Böhm wants to prepare this together with his team.
In the end, it comes down to achieving the best possible result for each company for creditors, employers, and the region. Until a possible sale, we try to maintain business operations as unrestrictedly as possible, Volker Böhm said.
If the conditions are met, Böhm will implement the necessary measures to stabilize the business operations of the insolvent Ziegler companies. These measures will take place in parallel with the ongoing sales process and are an important prerequisite for the investor solutions sought.
Additional group companies file for insolvency
Today, five other Ziegler companies have also filed for insolvency. These are the logistics subsidiaries “Ziegler Logistik GmbH” (c. 300 employees) and “Ziegler Global Logistics GmbH” (c. 15 employees), as well as the house-building group company “Engelhardt + Geißbauer GmbH” (c. 80 employees) and the associated non-operative “E+G Besitz GmbH”.
In addition, the Ziegler plastic packaging subsidiary “ZG Distributions GmbH” (c. 5 employees) has filed for insolvency.
Böhm plans to continue these operational companies in the preliminary proceedings and to restructure them later using investor solutions.
Logistics companies play a key role
There are already serious interested parties for Engelhardt + Geißbauer GmbH. The two Ziegler logistics companies play a key role in the continuation of the sawmill.
Today’s insolvency applications were therefore important to stabilize so that these companies can continue to perform their function within the group.
Böhm emphasized good cooperation with the management of the Ziegler Group and the individual companies.
The employees at Ziegler deserve special recognition, who continue to do their best despite the stressful situation, said Volker Böhm.
So far, 20 of the over 40 Ziegler companies have filed for insolvency. Many companies in the Ziegler Group are currently suffering from a lack of raw materials.
While Böhm assumes that several other companies will have to file for insolvency, the examinations have not yet been completed.
