Oetker Group to acquire German baking specialist Kathi

The acquisition is expected to improve Oetker’s presence in eastern Germany and diversify its baking portfolio.

GERMAN – Germany’s Oetker Group has announced the acquisition of Kathi, a family-run baking mix and flour manufacturer based in Halle, Saxony-Anhalt.

This move is a strategic effort to reinforce its position within the baking industry.

The deal, finalised in July 2025, marks a significant expansion for Oetker, which is already known for its frozen pizzas, desserts, and home baking products.

The financial terms of the deal have not been disclosed, but the acquisition is expected to improve Oetker’s presence in eastern Germany and diversify its baking portfolio.

Founded in 1951, Kathi has built a strong reputation in eastern Germany, offering over 50 baking products including mixes for sponge cakes, muffins, fruit cakes, and ready-to-bake pizza dough.

Additionally, the company produces frozen cakes and ready-to-eat pastries. With a workforce of 90 employees, Kathi operates a single production facility in Halle, which will be retained under the new ownership.

Despite the acquisition, Kathi will continue to operate independently under the leadership of Managing Director Marco Thiele.

“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,” said Thiele.

Thiele emphasised that Kathi’s commitment to quality and innovation will remain unchanged.

Oetker Group, itself a family-owned enterprise, sees the acquisition as a natural fit.

Carl Oetker, executive board chair and great-great-grandson of the company’s founder, remarked, “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 Oetker Group”.

The move comes amid a broader reshuffle within the Oetker Group’s management, with Carl Oetker recently stepping into the role of executive board chair following the departure of Dr. Albert Christmann in May.

Kathi’s integration into the Oetker Group signals a continued trend of consolidation within the European food manufacturing sector, as companies seek to navigate economic headwinds and shifting consumer preferences.

For Oetker, the acquisition not only expands its product range but also reinforces its commitment to family values and regional heritage.

As the baking industry evolves, this partnership could serve as a model for how legacy brands can collaborate to preserve tradition while embracing innovation.

 

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