Gail’s Bakery parent company Bread Holdings, which also owns The Bread Factory, has been sold to Bain Capital Credit in partnership with EBITDA Investments for an undisclosed sum.
The move is backed by entrepreneurs Henry McGovern and Steven K. Winegar, to support the group as it moves into its 4th decade of growth.
The management structure will remain in place, the investors said they are “committed to the long-term success of the business and the current chairman, Luke Johnson, remaining invested and on the board”.
Risk Capital Partners (RCP), invested in the company in April 2011 when the group had about £25m in annual sales.
The company will distribute part of the proceeds to nearly 2,000 employees as a “recognition of their important contribution to the group’s success”.
Sandro Patti, a director at Bain Capital Credit, said: “Gail’s is a premier brand in the growing craft bakery market. Its ability to supply high quality, fresh bakery products, meals and drinks with a customer-focused culture drives Gail’s strong brand following, like-for-like growth and expanding bakery network.
“We are thrilled to partner with industry pioneers Luke Johnson, Henry McGovern, Steven K. Winegar and Tom Molnar to support the Gail’s Bakery and Bread Factory teams in achieving their goal of broadening access to high quality baked goods via new neighbourhood Gail’s.”
Tom Molnar, co-founder and CEO of Bread Holdings, said: “I want to thank our talented community of bakers, baristas, managers, leaders and support teams who have worked hard to be a leading voice for craft in the UK.”
Henry McGovern, a founding partner at EBITDA Investments, added: “We know a winner when we see one and Gail’s is such a business. I have followed it for years. Throughout the Covid-19 pandemic its team continued to operate at the highest standards and to serve the public without failing.
“We are very pleased to be co-investing with Mr. Luke Johnson, who has been an investor in the company for over a decade, the management team led by its CEO – Tom Molnar, and a leader in the world of private investments, Bain Capital Credit. With our combined knowledge and spirit of ‘anything is possible’, we look forward to growing this great brand.”