Kelheim Fibres GmbH announced that the transaction process with the LEO III fund, part of its self-administered insolvency proceedings, failed despite intensive efforts.
The notarized purchase agreement could not be executed due to unmet key conditions—particularly the lack of firm 2026 volume commitments from several major customers. The investor withdrew, unable to secure a viable business model.
Despite support from most customers and successful restructuring measures, the current order book does not justify continuing normal operations beyond December 31, 2025. Management is preparing an orderly production phase-out by late March 2026, with constructive talks ongoing with the works council.
A new strategic investor has suddenly joined the M&A process. This newcomer is evaluating a stake or full acquisition at an early stage, with no guaranteed outcome. All viable options remain under review.
Management says employees will receive regular, transparent updates. The success of any deal or phase-out hinges largely on their commitment. The company thanked staff for their exceptional professionalism and loyalty.
Kelheim Fibres is the world’s leading manufacturer of specialty viscose fibres, recognized for its strong focus on innovation, quality, and sustainable production. Headquartered in Kelheim, Germany, Kelheim Fibres employs around 350 people at its production site.
Source: Kelheim Fibres
