German food manufacturer Oetker Group has struck a deal to acquire local baking mixes and flours producer Kathi.
The financial terms of the deal were not disclosed.
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Founded in 1951, family-owned Kathi has a production facility in Halle, in the state of Saxony-Anhalt. It employs 90 people.
Explaining the rationale behind the acquisition, Oetker told Just Food Kathi had a strong presence in eastern Germany and the deal would help the company expand further into the region.
Kathi sells more than 50 baking products, with its range including mixes for sponge cake, fruit cake and muffins, as well as ready-to-bake pizza dough. It also produces a line of ready-to-eat pastries and frozen cakes.
Following the transaction, Kathi will continue to be managed under the same leadership, with MD Marco Thiele leading the business.
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By GlobalData“In light of the ongoing difficult economic conditions and a challenging market environment, we are very pleased to have found a strong partner with whom we can set up our family business in a future-proof and innovative way. We look forward to working together under the umbrella of the Oetker Group,” Thiele said.
“Kathi’s business will not change, we will continue to be a reliable, high performing, and innovative partner for our customers and our consumers.”
Carl Oetker, a member of the group management of the Oetker Group, said: “It will be a pleasure for us to welcome Kathi as a member of our group. As a family-run company, Kathi aligns perfectly with the values, goals and strategy of the family-owned company Oetker.”
In March, the Oetker group of family-owned businesses is undergoing a management reshuffle, which will effectively see the appointment of new heads of the food and beverages divisions.
The changes revolved around Dr Albert Christmann, who stepped down as the “general partner” of Dr August Oetker KG and from the group management team of the Oetker Group in May.
Carl Oetker, the great-great-grandson of the Germany-based company’s founder Dr August Oetker, replaced Christmann as executive board chair.
Dr August Oetker KG is the holding company of the Oetker Group, which includes three business divisions: food; beer and non-alcoholic beverages; and hotels and “other interests”.
In turn, the key part of the food division revolves around Dr August Oetker Nahrungsmittel, which includes the frozen pizza brand of the same name and a range of home baking products, as well as the Chicago Town pizza brand.
The food division also includes the Coppenrath & Wiese confectionery unit, which produces frozen cakes and pies mainly for the German market.
