Auctus buys Landbäckerei Sommer from SIP

Including dividends received over the investment period and a recapitalisation carried out in 2019, the GP scored returns of more than 20x its total investment, SIP managing partner Philipp Amereller told Unquote.

Managing director Barbara Zeyß will double her existing share in the business as part of the deal, retaining a minority stake.

SIP acquired the business, then known as Sauerländer Landbäckerei Friedrich W Sommer, in a 2011 buyout valued at less than €10m. The GP invests on a deal-by-deal basis, targeting companies with revenues of €5-100m, but focusing on those with sales in the €10-50m range. The firm invests in companies with EVs of up to €50m, providing equity tickets of €3-25m.

Asked about the timing of the exit, Amereller told Unquote: "After about 10 years, we had the impression that we had advanced the business successfully, as it had developed extremely positively and has significantly exceeded our original expectations. With Auctus, we have found someone who is a perfect fit for further development and future add-on acquisitions."

During SIP's investment period, the bakery chain appointed Zeyß as managing director as part of a succession solution, optimised production, and opened new branches, according to a statement.

The company did not suffer during the coronavirus crisis and its related lockdowns in 2020, Amereller said. "Sommer came through the coronavirus lockdown well and has even exceeded our expectations this year. Both the bakery market and quick service market are generally little-affected by economic fluctuations. Both markets have proven to be robust during the coronavirus crisis."

SIP expects to announce another platform deal in the coming months, Amereller told Unquote. "We continue to have a strong pipeline with (partly) exclusive negotiations and are therefore very confident to close at least one further transaction in early 2021."

Auctus is currently deploying via Auctus V, which held a final close in October 2019 on €250m. Auctus invests in businesses with revenues of €10-150m and EBITDA of at least €2m. Landbäckerei Sommer is the vehicle's fourth platform investment of 2020; Auctus invested in Switzerland-based Pro Engineering in October 2020.

Company
Founded in 1927, Landbäckerei Sommer is a bakery chain selling bread, pastries and snacks. The bakery has 60 sites in the Sauerland region and is headquartered in Eslohe-Bremke in North-Rhine Westphalia. The company employs 500 people. It reported revenues of €16m in 2010, at the time of SIP's original investment. The company reported gross profit of €18.7m in 2018, compared with €17.3m in 2017, according to its latest annual accounts.

People
Silver Investment Partners – Philipp Amereller (managing partner).
Auctus – Christoph Stockbrügger (managing partner).
Landbäckerei Sommer – Barbara Zeyß (managing director).

Advisers
Vendor – Network Corporate Finance (M&A); Wendelstein Rechtsanwälte (legal).
Equity – Ebner Stolz (legal); AC Christes (tax, financial due diligence).

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