LONDON — Bain Capital Credit has partnered with EBITDA Investments, a food ecosystem fund backed by entrepreneurs Henry McGovern and Steven K. Winegar, to invest in Bread Holdings, parent company of Gail’s Bakery and The Bread Factory.
“Gail’s is a premier brand in the growing craft bakery market,” said Sandro Patti, a director at Bain Capital Credit. “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 neighborhood Gail’s. Gail’s represents our third investment in food services in the past 18 months and is an important acquisition in our growing portfolio of mid-market businesses in Europe.”
In addition to Gail’s, Bain Capital recently has acquired premium dessert company Dessert Holdings and pan European food business Valeo Foods.
“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,” said Tom Molnar, co-founder and chief executive officer of Gail’s. “Over the last 18 months their focus and dedication have been especially impressive. We believe that craft baking and craft principles are currently underrepresented in today’s food landscape and that society is better when we eat better. We are aligned with those in the sector — chefs and buyers — who are working hard to provide an alternative to industrialized food production and shift power back to chefs, bakers and others dedicated to quality. With the completion of this transaction, I believe we have chosen the right shareholder group to support our goals and growth plans.”
Gail’s was founded in the early 1990s by Yael (Gail) Mejia. In 2003, Mr. Molnar and a few friends joined the premium wholesale craft bakery and grew the business organically. The team moved all the baking under one roof in Hendon, north London, to provide a better shared workplace for the bakers and top standards of food safety, and in 2005, the team opened its first high-street bakery in Hampstead to bring its chef-quality craft baking and craft principles to a wider audience. Over the next six years, seven Gail’s retail bakeries were opened in London. Over the past 10 years, and due in large part to an investment by Risk Capital Partners in 2011, Gail’s has grown to 73 locations and serves premium grocery players as well as premium hospitality and restaurants. It has also made investments into small craft bakeries in Manchester and Bath and is growing Bertinet bread — a premium, additive-free alternative.