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 Ziegler Group companies. Böhm is using a so-called “structured investor process” for this purpose. In this process, potential national and international buyers are identified and approached in a targeted manner. This is followed by a multi-stage process in which the best future partners for the companies concerned are selected, whereby interested buyers who come forward on their own initiative are also considered.

“Since the start of the provisional insolvency administration, we have already been contacted by a number of interested parties for a whole range of Ziegler companies,” reports Volker Böhm. “This is an important indication for the further investor process, as it shows the fundamental interest that exists in the market.” Böhm’s aim is to develop investor solutions for as many of the Ziegler companies as possible in order to preserve the businesses and as many jobs as possible. Parallel to approaching new investors, talks with existing interested parties will continue. The insolvency proceedings enable potential investors to take over parts of the Ziegler Group “unencumbered”, i.e. without assuming liabilities.

In agreement with the creditors, Böhm has commissioned the renowned international consulting firm PWC as an “M&A advisor” to support the investor process. PWC has already begun its work and will start approaching the market shortly. “The Ziegler Group companies need an investor so that they can remain competitive and successful providers on the market in the long term,” explained Böhm. “I am convinced that some companies have good future prospects with the right investor.”

In order to facilitate access for investors, the provisional insolvency administrator has already begun to unbundle the complex group structures of the Ziegler Group. This is taking place in parallel with the ongoing review of the economic situation of each individual group company. “An overall sale of the group is conceivable,” added Böhm. “However, there are a number of different business areas in the group that we assume will be of interest to different investors.”

It is therefore quite possible that several investors will come on board. He wants to prepare this together with his team. Böhm continues: “In the end, it is important that we achieve the best possible result for creditors, employers and the region for each company. Until a possible sale, we are trying to keep the business operations running as fully as possible.” If the conditions are met, Böhm will implement the necessary measures to stabilize the business operations of the insolvent Ziegler companies. These measures are being implemented in parallel with the ongoing sales process and are an important prerequisite for the targeted investor solutions.

In the meantime, five other Ziegler companies have filed for insolvency. These are the logistics subsidiaries “Ziegler Logistik GmbH” (approx. 300 employees) and “Ziegler Global Logistics GmbH” (approx. 15 employees) as well as the house construction group company “Engelhardt + Geißbauer GmbH” (approx. 80 employees) and the associated non-operative “E+G Besitzgesellschaft mbH”. In addition, the Ziegler plastic packaging subsidiary “ZG Distributionsgesellschaft mbH” (approx. 5 employees) filed for insolvency.

Böhm plans to continue these operating companies in the preliminary proceedings and to restructure them in the further course via investor solutions. 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 filings were therefore particularly important in order to stabilize these companies so that they can continue to perform their function within the Group.

Böhm emphasized the good cooperation with the management of the Ziegler Group and the individual companies. “The employees at Ziegler, who continue to give their best despite the difficult situation, deserve special recognition,” said Böhm. To date, 20 of the more than 40 Ziegler companies have filed for insolvency. Many Ziegler Group companies are currently suffering from a lack of raw materials. Böhm assumes that a number of other companies will have to file for insolvency. However, the investigations have not yet been completed.

The Ziegler Holding company filed for insolvency on November 20, 2024. The group had embarked on an aggressive growth course in recent years, not least through acquisitions. In addition to its core business of woodworking and processing for the construction industry, the Ziegler Group is now also active in logistics, 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 slump in demand in the construction sector as a result of the war in Ukraine and the rise in interest rates. According to its own figures, the Ziegler Group employs around 3,000 people in three countries (Germany, Sweden and Romania) and generated Group sales of around 750 million euros in 2023 despite weak markets.