Apax Provides Dough for German Bakery

The UK and German funds of Apax Partners & Co have acquired a substantial minority holding in Wendeln Brot, Germany’s leading bread and baked goods manufacturer, through a “three figure millions” (Deutschmark or Sterling-denominated) investment.

The funding supported Wendeln’s acquisition of the family-owned Lieken Group: by adding the Lieken Urkorn brand to its stable, the Wendeln Group is now the owner of the only two national bread brands in the highly fragmented German bakery market. As a result of the acquisition, Wendeln expects its sales, which reached DM1.65 billion in 1997, to top the DM2 billion (ecu 1.01 billion) mark for the first time this year.

The Apax investment was split “almost 50/50” between the UK and German funds, according to director Neil Brown, who confirmed that the group did not plan to sell down any of its holding. The balance of Wendeln is owned by family shareholders and senior management. The owners are aiming for a flotation within three to five years.

Wendeln is an extremely well known company in its domestic market. This deal, one of Apax’s largest to date, may prove particularly timely, boosting the house’s profile in Germany and linking its name with a major and respected family business at a time when potential competitors are piling into Germany’s blossoming private equity market.