Clearwater advises Danmatic Automated Bakery Systems A/S on its sale to Storskogen

Transaction

Danmatic on its sale to Storskogen

Sell-side

Undisclosed

Role

Adviser to Danmatic Automated Bakery Systems A/S on its sale to Storskrogen

Sector

Industrial & Chemicals

Region

Denmark

Clearwater has advised Danmatic Automated Bakery Systems A/S (Danmatic), a leading manufacturer and distributor of industrial bakery processing equipment in Scandinavia, on its sale to Swedish industry conglomerate Storskogen.

Established in 1988, Danmatic is a leading provider of professional bakery processing equipment in the Nordics. The unique product portfolio consists of own-developed specialised products, supported by third-party products, enabling them to deliver both single machinery and full industrial bakery lines. Continuous product development and innovation combined with long-term relationships with large international bakery companies have ensured the growth of Danmatic in both topline and profitability.

Storskogen is a privately owned company investing in well-managed and profitable companies with leading positions in their markets. It is divided into three business areas, consisting of 70 business units with over 4,000 employees, more than two-thirds of which are located outside metropolitan regions. Storskogen believes in nurturing the qualities that have made the companies it acquires successful, and it is not in its intention to divest them.

With the backing of Storskogen, Danmatic is expected to further accelerate the international expansion of its own-developed products and to continue its consolidation of the Scandinavian market for bakery process equipment via organic growth and acquisition of potential targets.

We would never have gotten through this process without the Clearwater teams’ dedication and vast experience from similar transactions. The Clearwater team showed great commitment and understanding of our business and in a structured manner, they assisted us in building up a strong presentation of our company and focused on highlighting the right figures. Their ability to convert the information they drew out of us into insightful and value-creating arguments vastly contributed to a more attractive value and terms during the process. Storskogen is a well-consolidated investor with long-term commitment, and we are excited about having found the ambitious partner for further growth that we were looking for.
Henrik Praegel, Founder, Danmatic Automated Bakery Systems A/S

Ten years ago, a close friend advised me to start thinking about the future of Danmatic. At first, I thought it was too early even to consider, but I took the advice and amongst other initiatives, this entailed a continuous but non-binding dialogue with Clearwater during the last five to six years. This meant that when we finally decided to begin the process of finding an investor to ensure the future development of Danmatic, we had already given some initial thought as to what our ambitions were. We set out convinced that the only way to secure our business and employees would be selling to a strategic buyer. Today, I am grateful that the Clearwater team, based on their strong understanding of our business and market, as well as success criteria for a potential sale, challenged us on our original strategy of a strategic investor, and expanded our horizon to introduce potential financial investors to the process. An introduction, which has now resulted in us finding the right partner in Storskogen that shares our ambition on further developing Danmatic. The Clearwater team was professional in securing a structured process, allowing us to focus on the day-to-day management and continued development of Danmatic. It has been an inspirational journey during which I have learned new aspects of our business. This is what the Clearwater team excels at – their ability to highlight opportunities and synergies for potential investors, always with a strong foothold in data.
Claus Lykke Gregersen, Founder, Danmatic Automated Bakery Systems A/S

We are pleased to have advised the owners of Danmatic on the process of finding a co-shareholder that contributes to the further development and internationalisation of the Company. Danmatic is a great example of Danish engineering capabilities and know-how within food processing equipment and solutions used to automatise and optimise food production as well as improving the working environment for the employees in industrial and artisan bakeries. In Denmark, we have a proud tradition of fostering innovative solutions within food processing equipment with great international potential and Danmatic is a great example of this.
Lars Rau Jacobsen, Partner, Clearwater