POELLATH advises Argos Wityu on acquisition of the Karl Schmidt bakery group

Pan-European investor Argos Wityu (“Argos”) has acquired a majority stake in Karl Schmidt GmbH (“Bäckerei Schmidt”), current operator of 73 branches of the Bäckerei Schmidt brand in North Rhine-Westphalia and Lower Saxony, through its fund “Argos Wityu Mid-Market VIII”. The sellers were funds advised by Odewald KMU (“Odewald”). The management of Karl Schmidt GmbH will retain a minority stake and continue to run the company in the future. The parties have agreed not to disclose the financial details. The closing of the transaction is still subject to the standard regulatory approvals. POELLATH advised Argos on tax matters in connection with the acquisition.

Karl Schmidt GmbH boasts a history spanning more than 130 years. In addition to traditional bakery outlets, the company operates catering concepts of various sizes: From smaller cafés to branches under the name “Brothaus” with more than 50 seats. It is important to Bäckerei Schmidt to use regional raw materials, provide high-quality products and friendly service and use modern, innovative production processes. The company employs around 720 people at 73 branches in attractive locations in North Rhine-Westphalia and Lower Saxony and is regarded as the regional market leader.

Argos Wityu is an independent, pan-European private equity firm that supports the growth of medium-sized companies in various sectors. The firm was founded in 1989 and has a total of 7 locations in Europe. The acquisition of Karl Schmidt GmbH is the eighth investment by the “Argos Wityu Mid-Market VIII” fund.

POELLATH advised Argos on all tax aspects of the transaction with the following Munich-based team:

• Dr. Nico Fischer (partner, lead, tax)
• Raphael Baumgartner (counsel, co-lead, tax)
• Bianca Disch (senior associate, tax)