DZ BANK AG acted as exclusive financial advisor to Karl Schmidt Group

The Karl Schmidt Group is headquartered in Preußisch Oldendorf and is being led by the Schmidt family in the fourth generation. Founded in 1891, the Group operates today more than 50 bakery branches in North Rhine-Westphalia and Lower Saxony, and is one of the leading bakery chains in East Westphalia. Karl Schmidt Group employs more than 400 people and runs an own production facility. Moreover, the company owns a truck fleet which comprises 13 vehicles. The majority of branches focuses on the out-of-home consumption of snacks and other convenience products. The Group has obtained multiple awards from the DLG and received the “Landesehrenpreis für Lebensmittel NRW” in the past.In order to drive further company growth, the managing shareholders have been looking for a strong external partner. VR Corporate Finance has been mandated by the shareholders of Karl Schmidt as the M&A advisor to find a partner for a majority share. VR Corporate Finance primarily approached private equity companies with a long term strategy and a strong focus on the German Mittelstand. The renowned German private equity partner Odewald KMU has acquired a significant majority share. The rest of the shares remain with the previous managing shareholder, who will continue to lead the company as managing director.

“The sale from a position of strength, in which the shareholders can sell, but do not have to – this demonstrates an excellent groundwork to enter a partnership with an investment partner“, describes Dietmar Kohl, Member of the Management Board of VR Corporate Finance. ”Despite the difficulties in the bakery sector, there are companies such as Karl Schmidt which are characterised by a high quality product portfolio, very attractive profitability and a sophisticated logistic concept”, Kohl further explains, who together with his team is responsible for the entire transaction process. “Now, a solid basis for further growth and a well organised succession plan has been established”, concludes Kohl. “Only through a strong branch expansion, bakery chains have the chance today to stay profitable in the future“. The parties have agreed not to disclose information on the purchase price.