After filling for insolvency in self-administration earlier this year, Illig announced it has found an investor that will enable the German thermoforming company to continue offering its services.
Orlando Capital GmbH, a Munich-based financial investor, will acquire Illig’s entire portfolio and continue the business in all sales regions worldwide.
The identity of the investor was confirmed by an Illig spokesperson to Südwestrundfunk (SWR), the public broadcasting company for the German state of Baden-Württemberg, home to Illig’s headquarters in Heilbronn.
Orlando Capital is an expert on takeovers ‘focusing on medium-sized companies in complex situations’, Illig said in a statement. The company’s website says it has performed over 85 transactions in its 20-year history, with a maximum transaction volume of €200 million.
Illig announced last week that 200 of its approximately 500 employees will be affected by the takeover. The job cuts are a prerequisite for the takeover, an Illig spokesperson told SWR.
Those affected can be accommodated in a so-called transfer company for a period of one year, protecting them from unemployment until 2025. A transfer company is a German labour market policy instrument that helps employees at risk of unemployment finding new work as quickly as possible.
From August, the family-owned machinery manufacturer, which celebrated its 75th-year anniversary in 2021, will start operating as an independent entity. Apart from the layoffs, Illig said its entire business operations will continue as usual.
In addition to the acquisition, Orlando Capital will ‘use significant cash resources to position Illig as a market leader in the long term. The acquisition will be funded exclusively with equity capital and aims to achieve a very high equity ratio’, Illig said in a statement.
Illig said it is optimistic about the future as it sees demand for sustainable solutions increasing. The thermoforming services supplier announced the injection of new capital will allow it to invest in new technologies and innovations again. It will start by showcasing a new system for processing dry natural fibres at the Fachpack trade fair in Nuremberg this September.
Illig continued to attend global events such as ChinaPlas 2024 and NPE2024 after announcing its restructuring proceedings.
In the past few years, Illig battled high costs due to inflation, interest rates, and energy prices; the after-effects of the coronavirus pandemic; and the consequences of international conflicts, all of which weakened the company's financial situation.
The Illig Group operates eight service subsidiaries worldwide and has two production sites, one in Heilbronn, Germany, and one in Romania.