Lagkagehuset bread
Lagkagehuset offers artisanal bread, cakes and pastries as well as other food, teas and coffee.

JERSEY, U.K. — Nordic Capital Fund VIII has acquired Lagkagehuset, a premium Danish bakery and food service chain, from FSN Capital. As part of the transaction, Nordic has acquired FSN Capital’s majority shareholding in Lagkagehuset, as well as the stakes held by the bakery chain’s two founders, Ole Kristoffersen and Steen Skallebaek. Financial terms of the transaction were not disclosed.

Lagkagehuset has stores across the United Kingdom, focusing on artisanal bread, cakes and pastries as well as other food, teas and coffee. The company’s business model revolves around in-house bakery production and a scalable roll-out strategy. The company’s stores in the United Kingdom trade under the Ole & Steen brand.

Michael Haaning, Nordic Capital
Michael Haaning, partner, NC Advisory A/S

“Nordic Capital has a track record of investments in the food industry and sees great potential in supporting Lagkagehuset in its further expansion,” said Michael Haaning, partner, NC Advisory A/S, adviser to Nordic Capital. “Lagkagehuset has a great customer-oriented concept that delivers high-quality products every day and is a preferred brand for consumers in Denmark. Nordic Capital will leverage its industry expertise within the retail sector to further develop the company internationally supporting Lagkagehuset’s continued progress and expansion in partnership with the company’s strong management team.”

Lagkagehuset has 67 stores throughout Denmark and a newly established presence in London.

Reflecting on its ownership of Lagkagehuset, Thomas Broe-Anderson, partner at FSN Capital, said, “We started with Ole and Steen and two stores. Today, eight years later, there are 67 stores in Denmark and two in London. Lagkagehuset is above all a fantastic company with a unique culture and quality products. The two stores in London are the first expansion beyond Denmark’s borders. There will be 200 employees in London before year end, so it has gone far beyond our expectations. I can proudly look back on our ownership period.”

Jesper Friis, chief executive officer of Lagkagehuset, said the company looks forward to international expansion.

Jesper Friis, Lagkagehuset
Jesper Friis, c.e.o. of Lagkagehuset

“We have had a really great cooperation with our owners FSN,” he said. “We are excited to have found a strong partner in Nordic Capital, which has the experience, industry knowledge and capital to support us bringing Lagkagehuset to the rest of the world and we are looking forward to the new ownership. We have amazing employees and products and expect continued high growth in the coming years.”

Lagkagehuset has a total of 1,800 employees and reported revenues of DKK 665 million ($102 million) and growth of 20% in 2016.