Odewald KMU has sold Karl Schmidt to Argos Wityu

Karl Schmidt

Karl Schmidt is a growing system “gastroback” chain with established market leadership in North-west Germany, currently operating more than 70 branches in North Rhine-Westphalia and Lower Saxony. The bakery chain serves its customers via four different branch concepts and has a centralized production and logistics system in place, enabling an efficient production process. In addition to a broad product portfolio of high-quality baked goods from traditional craftsmanship such as buns, snacks and pastries, Karl Schmidt focuses on a full-day offering including breakfast and lunch among others.

The Deal

In 2017, after four generations as a family business, Odewald acquired the group as a part of a succession plan. After the acquisition, Odewald accelerated Karl Schmidt’s growth story by optimizing the branch portfolio, strengthening the management team as well as introducing a modern branding concept and stronger digital compatibility. Following this strong growth track driven by professionalization and expansion, Odewald mandated Lincoln International as the exclusive financial advisor to prepare the sale process of Karl Schmidt in which Argos Wityu swiftly showed keen interest in the asset and emerged as the successful bidder. Lincoln accompanied Karl Schmidt’s shareholders and management team throughout the preparation process as well as a tightly managed due diligence phase and successfully navigated negotiations between seller and buyer, providing valuable strategic guidance.

Our Perspective

Dirk Damegger, Lincoln International Managing Director who led the transaction, commented, “It was a pleasure to advise Odewald on the sale of Karl Schmidt, a leading regional bakery chain known for its exceptional product quality, superior supply chain and outstanding management team. We are confident that Argos Wityu will be the ideal partner to continue Karl Schmidt’s successful growth story.”

Odewald KMU

Founded in 2008 and headquartered in Berlin, Odewald KMU is one of the leading investment partners for succession solutions and growth financing in the German-speaking regions with €350 million in assets under management. The company focuses on realizing sustainable growth in small and medium-sized companies while maintaining the firms’ identities. The portfolio consists of companies from attractive target sectors such as German engineering, healthcare, intelligent service solutions and software, among others. Since 2008, Odewald has invested in more than 30 companies and achieved an average annual sales growth of their investments of 25%.

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The Lincoln team ran a highly professional process, making a difference through their strong commitment to excellence, personal engagement and hands-on mentality, creating valuable advice for all stakeholders throughout the entire project.
Joachim von Ribbentrop
Partner at Odewald KMU

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