Hochdorf eyes Pharmalys3 Aug 2016
Hochdorf says there is now mutual interest with Pharmalys Laboratories in pursuing an integration with the Hochdorf Group in the area of baby care, .
Hochdorf notes that it previously announced the integration of downstream stages of the value creation stream as one of its strategic aims, particularly for the international market. In the area of baby care, the company says there is now mutual interest with Pharmalys Laboratories in pursuing an integration with the Hochdorf Group. A memorandum of understanding has been signed to this effect.Hochdorf Holding does not currently supply the end consumer market in the baby care area through its subsidiary Hochdorf Swiss Nutrition. This would change with a majority shareholding in Pharmalys Laboratories based in Baar.The Pharmalys Group has a staff of more than 500 direct and indirect employees around the world. The company markets infant nutrition under the Primalac brand; it also markets infant nutrition and cereals under the Swisslac brand. Its products are available in 42 countries in Europe, Asia, Africa and the Middle East."We have achieved a very rapid growth in recent years with HOCHDORF products and we would like to continue in this vein. An integration can guarantee our access to the high-quality Hochdorf products. In return Hochdorf will receive direct access to consumers in our highly attractive markets," said Amir Mechria of Pharmalys.Hochdorf notes that Pharmalys Laboratories is a company that has shown rapid growth: a Hochdorf customer since 2008, Pharmalys expects to achieve sales of CHF 70 million this year with a two-figure increase in EBIT margins. The company is seeking to double its turnover and EBIT in the next two years. "The Hochdorf Group is striving towards forward integration in the area of infant nutrition,” said Dr Thomas Eisenring, CEO of the Hochdorf Group. “An association with one of our largest customers is exactly in keeping with our strategy. We have enjoyed excellent collaboration with Pharmalys for years.”The next step, said Hochdorf, will be to negotiate a purchase agreement. Adoption of the purchase agreement will depend on a variety of conditions.