BackWerk is a leading quick-service convenience food franchise concept. The company has over 340 franchise stores in Germany, Austria and Netherlands which are owned and operated by over 220 franchise partners
EQT invested in BackWerk in January 2014 by acquiring a majority stake from the founders who kept a minority stake. The value creation plan centered around strengthening the organization with a strong second level management team, expanding the store network and fostering same store sales growth through a continuous shift from simple bakery products into snacks, hot and cold drinks, sandwiches and other convenience food offerings.
During EQT’s ownership, BackWerk’s management, the supervisory board and EQT worked together to accelerate the strategic repositioning from a bakery chain to a leading German quick-service convenience food concept with a high and growing share of out-of-home sales. It was supported by a new brand strategy, a revitalization of the store concept as well as a strengthened product offering focusing on out-of-home products. BackWerk grew its store footprint from some 300 to over 340 locations and successfully expanded into the Netherlands. Under EQT’s ownership, BackWerk was transformed from being a founder-led company to having a strong corporate governance model with an independent management team leading the business.
In October 2017, EQT sold BackWerk to Valora Group in a transaction valuing BackWerk at approximately EUR 190 million.
Key events during EQT’s ownership
- Accelerated strategic repositioning from a bakery chain to a leading quick-service convenience food concept in Germany with more than 75% out-of-home sales (vs. 61% upon acquisition)
- Grew the store footprint from approximately 300 locations to over 340 locations and successfully expanded into the Netherlands
- Strengthened the organizational backbone with a strong second level management to form a basis for future development of the company