Livingstone’s Distressed M&A team has successfully advised the self-administration of Muensterland’s Margarine-Werke J. Luelf GmbH in a sales process that formed part of a transferring restructuring program. The business will continue to operate under the newly founded company Muensterland J. Luelf GmbH.
Muensterland’s Margarine-Werke J. Luelf GmbH (”MMW”), which generated sales of around EUR 30 million in 2016, was founded in 1889 in Rosendahl (Muensterland) by Mr. Josef Luelf. MMW is active in the production of margarine and fat-derived products as well as dairy drinks, and is especially known for its Classico dairy drinks and Smanta margarines. The Classico cocoa is one of the bestselling cocoa drinks in Germany. The production of all products takes place exclusively in the Company’s milk and margarine plant in Rosendahl.
The Management of MMW filed for insolvency under self-administration on 7th July 2017. The main reason for the bankruptcy was the market situation and the decreased demand in the low-margin margarine sector. The Company’s own management team remained in charge of the administration throughout the insolvency proceedings and was advised by the law firm LAMBRECHT Partnerschaft von Rechtsanwälten mbB. With the approval of the provisional trustee Stefan Meyer, PLUTA Rechtsanwalts GmbH, Luebbecke, at the end of July 2017, the Company mandated the international M&A advisory firm, Livingstone, with the implementation of a structured M&A process for the best possible realisation of new investors.
As part of the investor approach, Livingstone personally contacted potential investors in a short time of period. In the end the creditors’ committee decided to accept the offer of Lafayette Mittelstand Capital (”Lafayette”). Lafayette will continue operating the dairy drinks business with 49 employees.
The lead partner of LAMBRECHT, Annamia Beyer, states: ”Self-administration once again demonstrated its merits as a quiet process that evokes the necessary confidence in both customers and suppliers. We were able to rebuild the business, which provided the basis for a successful transfer.”
Mr. Stefan Meyer, trustee in the process, said: ”In Lafayette an investor could be found who was able to safeguard a majority of the workplaces; who has recognised the potential of the dairy sector; and who will continue to use and expand it in the future. This has laid important foundations for a successful restructuring of the company, with which the company can look positively to the future.”
Dr. André Schröer, Partner at Livingstone, Duesseldorf, commented: ”We are very pleased to have gained with Lafayette an experienced buyer for MMW. With the acquisition of the profitable dairy business, Lafayette can strengthen its own portfolio in the food sector and gainfully deploy its experience in this sector.”