Allgaier financing secured until the end of 2023

16.Dec.2020

Uhingen/Göppingen - After enormous efforts by all parties involved, the anxiety has come to an end. Yesterday, Allgaier was able to agree with the financiers on a supplementary syndicated loan agreement, which has been expanded in key areas, to secure financing for the traditional company.This secures the financing of new investments, and the prerequisites for growth in sales and earnings in the coming years are in place.

As a condition for continued financing, a restructuring concept was developed with which Allgaier can be competitive in the future and successfully compete in the market. Initially, the signing of the new contract was planned for March 2020. However, due to the Corona pandemic and the lockdown it caused, the company had to overcome further extreme economic difficulties. Allgaier therefore initially received interim financing from the banks in order to prepare an updated restructuring concept for the period up to the end of 2023. After the first Corona wave, the economic development of the Allgaier Group was very encouraging. After the difficulties in the second quarter, there was a significant recovery and the course of business during the last few months was almost back to the planned level before the pandemic. After the summer vacations, order intake also developed positively again.

With the support of the state government and the banks, Allgaier also obtained a state guarantee. At the same time, a search for investors was launched to strengthen the equity base. This concept, combined with the positive business development in the second half of the year, led to the banks' decision to continue the financing and to provide additional funds for financing. The Supervisory Board, shareholders, management and employees are relieved to have achieved the interim goal of a "new syndicated loan" and proud of the successes achieved over the past 18 months. In cooperation between the works council, the management and the human resources department, it was currently decided to take on three trainees from the insolvent Schweizer Group at Allgaier so that they can complete their training.

About Allgaier
The Allgaier Group is not only an indispensable partner to the automotive industry, but also develops standardized and individual solutions for the process engineering industry. From development to production, the Allgaier Group works in direct coordination with its clients. Every day, around 1,800 employees worldwide apply their knowledge and experience to meet the highest quality demands of their globally active customers. The result is always innovative and cost-effective solutions. With a total of 12 companies and numerous agencies worldwide, the Allgaier Group is present both in the traditional industrialized countries and in the emerging international growth markets.