Gail’s owner circles new investment as sale talks resume

The owner of Gail’s has reportedly relaunched talks with potential investors for the fast-growing premium bakery chain, almost a year after sale discussions fell silent, according to The Times.

Goldman Sachs, which was appointed last year to explore a possible sale of the 175-site business, has been retained to restart discussions, but industry sources told The Times no formal process is yet under way.

Speculation over a deal first began in December, when Bloomberg reported that McWin Capital Partners, which is already an investor in Gail’s parent company, was in discussions to acquire the group, potentially valuing it at around £500m. Those talks have reportedly since stalled.

Gail’s was launched 32 years ago by founder Gail Mejia as a supplier to London chefs. Chief executive Tom Molnar joined the business in 2003, and later brought the brand to the high street with its debut bakery and café in Hampstead in 2005.

The company expanded in 2011 when Risk Capital Partners bought out Mejia, before selling a majority stake a decade later to Bain Capital and Ebitda Investments, a fund managed by McWin, in a £200m deal.

Revenues at Grain Topco, the parent company of Gail’s Bakery and its wholesale division The Bread Factory, hit £231.8m in the year to February 2024, up from £181.8m a year earlier.

In July, Molnar told The Times the group remained on track to add another 35 sites this year as it continues its rapid roll-out across the UK.

Gail’s and McWin have been contacted for comment.