The notarial purchase agreement signed in early November 2025 could not be completed due to unfulfilled conditions precedent, particularly the absence of binding long?term supply commitments from key customers for 2026.

Transaction cannot be completed

The envisaged acquisition by LEO III Fund, advised by DUBAG Group, was intended to secure the future of the fibre producer and reinforce production efficiency and innovation at the Kelheim site. Despite intensive efforts by all parties, the lack of confirmed order volumes meant the investor could not proceed, as a sustainable business model was no longer ensured.

Impact on operations

Although Kelheim Fibres had implemented extensive restructuring measures and received broad support from its customer base, the currently secured order volume is insufficient to continue operations economically beyond December 31, 2025. The company is therefore preparing an orderly wind?down of its production activities while assessing whether limited continuation in 2026 might be possible if additional binding orders are confirmed in time.

Employee communication and next steps

Employees and the works council were informed about the situation on November 24, 2025. Management expressed gratitude to the workforce for their dedication and professionalism during difficult circumstances and announced ongoing support for affected staff during the transition.

With the termination of the planned takeover, the strategic realignment initiated earlier in 2025 — focusing on the high?performance, biodegradable viscose fibre Galaxy® — was interrupted following the failed acquisition. Whether production will continue on a reduced scale in 2026 depends on forthcoming customer commitments in the coming weeks.