Arkad becomes a shareholder of the Gröneweg Group, a leading machinery and service provider to the food industry

• Gröneweg is an innovative manufacturer of special-purpose machinery and integrated solutions for the food industry
• Around 60% of revenue is generated by the fast-growing service and spare parts business
• The company is an established partner to both global and regional food producers
• The transaction creates opportunities for regional expansion and entry into new markets, including the pharmaceutical and cosmetics sectors

Berlin/Edewecht, 5 October 2023 – Arkad Partners GmbH (Arkad) has become a shareholder of Gröneweg Maschinenbau GmbH (Gröneweg), an established provider of special-purpose machinery, process technology, components and services for the food industry.

Founded in 1992 by Gundolf Gröneweg and his son Thomas Gröneweg, the family-owned business has developed into a leading specialist in custom machinery. Its innovative automation technology has enabled Gröneweg to build a strong and well-established customer base. The company’s portfolio includes machinery for dosing, weighing, mixing, cutting and conveying applications, all manufactured at its site in Edewecht, Lower Saxony, and supplied to customers worldwide. In 2023, Gröneweg is expected to generate profitable revenues in the double-digit millions with more than 55 employees.

Arkad’s objective is to strengthen Gröneweg’s market position, expand its presence in Germany and internationally, and develop new business areas beyond its current focus, including the pharmaceutical and cosmetics sectors.

Thomas Gröneweg and Stefan Gröneweg, Managing Directors of the company, will remain with the business and continue to support its strategic and commercial development. David van Riesen, Managing Partner at Arkad, commented: “We are pleased to help preserve and further develop a strong example of German engineering. The succession solution provides customers, employees and all stakeholders with a long-term perspective. Together with the Gröneweg family, we look forward to continuing the company’s development over the years ahead.”

The focus will remain on maintaining and strengthening Gröneweg’s long-standing customer relationships. Existing customers’ announced investment programmes provide a strong basis for future growth and planning visibility. In addition, Arkad intends to support regional expansion and entry into new markets. New service locations and partnerships with other technology companies are expected to play an important role.

Arkad was advised on the transaction by Dr Jochen Lux, Dr Martin Mohr and Peter Ollesch of CMS. Christoph Katz of S&P Mergers and Acquisitions and Jörg Walzer of Treuhand Weser-Ems advised the sellers on the M&A process as well as legal and tax matters. The parties have agreed not to disclose the financial terms of the transaction.