Strategic transformation in the automation industry – powered by deep niche expertise

Danmatic, acquired by Storskogen in 2021, designs and builds specialised machinery for the industrial baking sector, such as equipment for glazing, sprinkling and inserting trays into ovens. For many years, Danmatic mainly worked broadly as a system integrator together with a third-party supplier of primary equipment. When that supplier was acquired by a larger company and changed its go-to-market strategy, Danmatic took the opportunity to rethink its role in the value chain.

Shifting strategic focus
Supported by Storskogen, Danmatic assessed its position and identified a gap in the market – a need for a niche player providing certain specialised bakery automation equipment. Danmatic chose to invest more in its own product range, R&D and sales organisation, partly shifting the focus to developing and selling its own innovative niche equipment.

Complementing its role as a system integrator, Danmatic leveraged its deep technical know-how and expertise in the baking industry to develop its product range within selected niches of bakery automation. By focusing on a limited number of critical processes, such as topping applications and tray handling, the company was able to develop highly refined, best-in-class equipment tailored to specific customer needs. This strategic change turned a previously minor segment of the business into a core strength and growth avenue.

Some of Danmatic’s solutions help reduce waste through more precise and consistent topping and glazing application, which is crucial for players in the baking industry as it affects the often costliest ingredients. Another part of Danmatic’s product range help minimise downtime through reliable and efficient tray handling – one of the main time thieves within industrial baking. These are examples of how Danmatic creates real customer value by addressing complex, high-impact challenges that directly affect customer performance and profitability.

From Storskogen’s perspective, this is exactly the type of businesses to invest in: a focused niche player that creates significant customer value through unique technology and deep expertise. Danmatic demonstrates how specialised, top-of-the-line solutions can outperform broader approaches and build long-term competitive strength.

More active sales and market presence
Danmatic also became more active in the market. The company deployed an agile sales team that worked hand-in-hand with engineering to align its sales strategy with operational capabilities and customer demands, focusing on converting leads into orders.

Further, Danmatic expanded geographically, from a system integrator in the local Danish and southern Swedish bakery market to a niche baking equipment provider with customers across Europe and the US.

The transformation required strengthening of the management team and for the CEO to unite the organisation around a few clear performance goals.

Growth and lasting impact
Since these strategic changes, Danmatic has managed to significantly grow its own product segment organically, while also steadily improving its contribution margin, enhancing its position and ability to continue building on these strengths in the market. Ultimately, by reassessing its market position and establishing a targeted new strategy, Danmatic succeeded in transforming its business, laying a foundation for continued profitable growth.

Martin Linander
Senior Investment Manager, Industry

Martin Linander is Senior Investment Manager in the Industry business area, with previous roles including Management Consultant and Strategy Manager.

More about Danmatic

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