Dahlback was founded in 1974 as a state-owned business in the German Democratic Republic (East Germany). After German reunification two families acquired the business. The company produces high quality bakery products and cakes from its three production facilities which are sold via ist owned network of outlets, many of which also sell sandwiches and coffee. Dahlback is one of the five largest bakery chains in Germany with a strong presence in the northeast of Germany.
One of the two families owning the business was not actively involved and wanted to divest its shares. The second family, which managed the Business on a day-to-day basis, wished to retire and to hand the business management over to their son. In October 2005 Steadfast Capital acquired a majority stake in Dahlewitzer Landbäckerei facilitating these respective family exits and a succession.
- Implementation of a comprehensive growth strategy: Dahlback grew through several minor and one major acquisition (UHB - Unser Heimatbäcker) from 90 to 350 outlets
- The number of production facilities rose from one to three allowing an optimisation of store logistics
- The number of employees increased from 600 to 2,500
- As part of the dynamic growth of the business the management was strengthened
- The implementation of innovative processes and concepts enabled the company to achieve above average growth rates and profit margins in a highly competitive sector
After almost nine years Steadfast Capital sold its stake in Dahlback in 2014 to existing management backed by another financial investor.