The Bern-based trading and services company, Valora, has announced the sale of two companies in Germany of its Slumberland group, which produces mattresses and bedding.
The decision to sell the entire Slumberland group was taken by Valora in a move to concentrate on distribution and small area retailing.
A statement on Thursday said that the Femira and Doerfert companies in Germany were the subject of a management buy-out with effect from December 31, 2000.
Negotiations for the sale of the rest of the Slumberland group are in progress.
Valora said that the Slumberland group would post a weak overall operating result for 2000, with Valora's group profit held down by the losses associated with the Slumberland sale. Extraordinary costs of up to SFr65 million ($40.37 million) are expected.
However, Valora said the earnings capacity of its core business remained good. It added that with earnings before interest, taxes and depreciation of SFr175 million, the earnings target of seven per cent would be achieved.
swissinfo with agencies
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