Bain Capital Credit heads investment in Gail's Bakery

Global credit company Bain Capital Credit and financial food fund EBITDA Investments have acquired a substantial stake in Bread Holdings, the parent company of Gail’s Bakery and the Bread Factory.

Luke Johnson, the chairman of Risk Capital Partners, which acquired Bread Holdings in 2011 when the group achieved £25m in annual sales, will retain a holding in the business and sit on the board of the business.

In the most recently published set of annual results for Bread Holdings, for the year to 29 February 2020, the company achieved a turnover of £116.4m, up 16% from the previous year.

Launched in the early 1990s by Yael (Gail) Mejia, Bread Holdings set out the Bread Factory wholesale business based in Hendon, north London, serving leading chefs and restaurants. Tom Molnar, chief executive of Bread Holdings, joined the company in 2003. The Gail's retail side of the business launched in 2005 with a bakery in Hampstead and today comprises 73 sites.

Alongside its wholesale and retail businesses, the company has also invested in small craft bakeries, including Bertinet in Bath.

Molnar thanked the company’s “talented community of bakers, baristas, managers, leaders and support teams who have worked hard to be a leading voice for craft in the UK”.

He added: “With the completion of this transaction, I believe we have chosen the right shareholder group to support our goals and growth plans.”

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."

Part of the widely reported investment of £200m in Bread Factory will be distributed to nearly 2,000 employees as a recognition of their contribution to the group’s success.