Private equity firms are increasingly acquiring bakery chains in Germany, with a recent takeover of a family-run business in Frankfurt highlighting the trend. Investors aim to unlock growth potential and streamline operations in the craft sector.

Germany’s bakery industry has caught the attention of private equity firms, marking a shift in investment focus towards traditional craft businesses. A notable example is the recent acquisition of Eifler, a fourth-generation family-run bakery chain based in Frankfurt, by FSN Capital, a Norwegian private equity firm. Eifler operates 95 branches across Frankfurt and its surrounding areas, making it one of the city’s most recognizable names in baked goods.

Experts in private equity investments suggest that such acquisitions are driven by the potential for value creation. According to Oliver Gottschalg, a professor specializing in private equity, investors often seek businesses with opportunities for efficiency improvements or attractive entry prices. These investments are less about the products themselves and more about transforming companies to maximize profitability and growth.

The trend reflects a broader surge in private equity activity in Germany over the past decade. Data from industry associations and consulting firms indicate a significant rise in the number of active investment firms, with buyout-focused entities growing from 130 in 2016 to nearly 200 today. FSN Capital’s strategy includes consolidating bakery chains under a unified brand, BrotWert, which now encompasses 500 locations, including recent acquisitions of other regional bakery chains. The goal is to drive growth and implement strategic changes across the network.