The Weinig Group says it has reached a “broad agreement” to buy Austrian woodworking machinery manufacturer Holz-Her, which is currently in administration.
Holz-Her sought bankruptcy protection at the beginning of 2010 after suffering from declining orders and a €37m debt burden.
In a statement, Weinig said its purchase of Holz-Her depended on a successful conclusion to negotiations and approval by Weinig’s supervisory board.
It aims to finalise a deal by April 1, with the intention of making Holz-Her a separate brand within the Weinig Group.
“Holz-Her’s high level of competence in the field of CNC is of particular interest to Weinig,” said Weinig CEO Walter Fahrenschon.
Holz-Her has more than 800 creditors and suffered a “massive” drop in business during the recession, according to The Alpine Land Creditors Association.
It said a 50% fall in turnover to €50m in 2009 caused banks to reduce the company’s credit.
Holz-Her was established in 1914 and has 290 employees in Austria and 90 in Germany. It was taken over in an investment company-backed management buyout in 2008.
