A Bäckerei Schmidt store in Minden, North Rhine-Westphalia | Photo credit: Bäckerei Schmidt

European private equity firm Argos Wityu has entered into an agreement with the shareholders of Bäckerei Schmidt to acquire a majority stake in the German bakery chain. 
 

Argos Wityu said in a press release that the deal, made for an undisclosed sum, will see the current majority shareholder, Odewald KMU, fully exit the business and Bäckerei Schmidt Managing Director Martin Manski increase his stake. 

Bäckerei Schmidt’s current management team – led by fourth generation Karl Schmidt – will continue to lead the business’ day-to-day operations. 

“We would like to thank Odewald KMU for the great partnership over the past few years, and we’re delighted to have found such a suitable new owner in Argos Wityu. The team shares our understanding that customers like to spend time in a pleasant atmosphere – not just to buy bread, but to pass the time, have lunch and drink coffee there. Together, we want to expand the offer and continue to improve the customer experience,” Manski said. 

Founded in 1891, Bäckerei Schmidt now has 73 stores across the German states of North Rhine-Westphalia and Lower Saxony. The business operates a portfolio of traditional German bakeries, small cafés, supermarket concessions and larger outlets offering all-day cuisine. 

Argos Wityu said it plans to double Bäckerei Schmidt’s footprint over the next five years through organic outlet growth and brand acquisitions. 

With more than €1.8bn ($1.9bn) in assets under management, Argos Wityu specialises in management buyouts of medium-sized businesses typically for between €10m ($10.8m) and €100m ($108m). The private equity firm’s previous investments in the food and beverage industries include baking and catering equipment manufacturer Sasa Demarle and dairy producer Latteria e Caseificio Moro. 

Argos Wityu has offices in Belgium, France, Germany, Italy, Luxembourg, the Netherlands and Switzerland.