Corporate Restructuring

Client Challenge 

The client, a subsidiary of an MDAX-listed group, was confronted with a deteriorating financial situation. Although the company was legally independent, its high operational integration with the parent group triggered a group liability risk, making insolvency or comparable restructuring approaches impossible. A turnaround therefore had to be achieved internally, through operational, structural, and strategic realignment.

The subsidiary – a provider of engineering and plant solutions for the global packaging and textile industries – anticipated substantial losses. The main drivers were:

• Strong competitive pressure from Asian market players

• Political instability in Turkey, one of its key sales markets

• A temporary decline in demand due to the end of a technology cycle

Complicating matters further, legally significant measures (e.g., employment or contract decisions) could only be executed by the subsidiary’s management. As a result, the restructuring required intensive coordination between the group and the entity’s leadership.

The overall challenge:
Stabilise operations, reduce costs, ensure legal compliance, and evaluate whether the two European locations could be consolidated – all without disrupting ongoing business.

Haselhorst Approach  

Haselhorst Associates developed and executed a comprehensive restructuring programme combining strategic guidance with operational implementation support.

Key elements of the approach included:

• Development of a restructuring concept for both European locations

• Assessment of consolidation scenarios to determine the optimal footprint

• Planning of structural adjustments in line with the newly defined target sales volume

• Close collaboration with the subsidiary’s management to ensure legally compliant execution

• Hands-on support throughout the implementation of all restructuring measures

In parallel, Haselhorst bridged the gap between group management and the subsidiary, ensuring that strategic objectives were translated into actionable steps while safeguarding the entity’s operational stability.

Results

The restructuring measures produced clear and sustainable outcomes. Through targeted realignment, both European sites were preserved, as analysis showed that a dual-location model remained viable after optimisation. Structural adjustments generated meaningful fixed-cost reductions and aligned the organisation with realistic market dynamics.

Achieved results at a glance:

• Retention of both European locations

• Significant fixed-cost reduction through structural adjustments

• Designation of project managers to coordinate and implement restructuring measures

• Sustainable increase in EBIT and overall performance

Overall, the company restored financial stability and strengthened its competitive position for the next demand cycle.

About the Client

The client is a manufacturer of chemical plant systems and part of an MDAX-listed industrial group that ranks among the international leaders in large-scale plant engineering. The commissioning division is responsible for chemical plant construction and expanded its portfolio through the acquisition of a company specialising in polycondensation plants. This subsidiary serves customers worldwide in the packaging and textile industries and generates annual revenues of EUR 55 million. The project spanned five months, with Dr Jörg Schumacher acting as the primary contact.