Kelheim Fibres produces about 35,000 tons per year of specialty viscose fibres that are mainly used for (feminine) hygiene products, specialty papers and technical applications.
Jan. 16, 2026 - Kelheim Fibres in December 2025 announced that it is now preparing for an orderly phase-out of production by the end of March 2026 after a potential investor pulled out a purchase agreement.
In early-November 2025, Munich-based financial investor LEO III Fonds signed a notarial purchase agreement with Kelheim Fibres with the agreement becoming part of Kelheim's ongoing self-administered insolvency proceedings. But three weeks later Kelheim reported that the investor withdrew from the deal.
In a written statement, Kelheim Fibres explained, "The transaction process pursued as part of the ongoing self-administered insolvency proceedings with the Munich-based LEO III Fund, who had previously signed an agreement to purchase Kelheim Fibres, could not be successfully completed due to the non-fulfillment of essential closing conditions — in particular, the absence of binding volume commitments from several major customers for the year 2026. As a result, the investor was compelled to withdraw from the agreement, as a viable business model could not be secured.
"Despite broad support from the majority of customers and the restructuring measures already successfully implemented, the currently binding order volume is not sufficient to economically justify a regular continuation of operations beyond 31 December 2025," Kelhiem said.
However, and currently, Kelheim said that a potential strategic investor has entered the M&A process at very short notice.
"This investor had not previously participated in the process and is currently reviewing a possible investment in or acquisition of Kelheim Fibres. The assessment is still at an early stage, and the outcome of this review process remains open. The company's management supports any realistic option for the continuation of operations," the company stated.
"Employees will continue to be informed regularly and transparently about the current status. At the same time, management is aware that both the successful execution of an orderly phase-out and any potential transaction depend to a significant extent on the commitment, support and cooperation of the employees," Kelheim Fibres added.
Kelheim Fibres produces about 35,000 tons per year of specialty viscose fibres that are mainly used for (feminine) hygiene products, specialty papers and technical applications. The company is located in the town of Kelheim, in Bavaria, Germany.
SOURCE: Kelheim Fibres