15th September 2021

Bread Holdings, the parent company of GAIL’s Bakery and The Bread Factory, have secured an investment from Bain Capital Credit in partnership with EBITDA Investments, the food ecosystem fund, backed by entrepreneurs Henry McGovern and Steven K. Winegar, to support the neighbourhood craft bakery as it moves into the next growth phase. The investment brings continuity to the Group, with key management remaining in place committed to the long-term success of the business and the current chairman, Luke Johnson, remaining invested and on the Board. 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.

Message from Tom Molnar, Co-founder and CEO “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. 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 industrialised 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.”

Sandro Patti, a Director at Bain Capital Credit, commented: “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 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.”

Henry McGovern, a founding partner at EBITDA Investments, shared: “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.”

About GAIL’s

The bakery was started by Yael (Gail) Mejia in the early 1990’s serving top chefs and food venues. In 2003, Tom Molnar and a few friends joined Yael’s 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. 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 following six years they grew the business with top chefs and opened seven GAIL’s retail bakeries in London as the general public and restaurants began to reinvent the London food scene. With the investment by RCP in 2011, the team had a new partner with capabilities and knowledge to support further growth of the business, especially in retail and property.

Over the past ten years the business has grown to seventy three GAIL’s 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 to the ubiquitous square tin sliced wrapped loaf. Over the last 18 months of a Covid-influenced world, the teams have worked hard to survive and believe they can emerge stronger. www.gailsbread.co.uk.

Based on current trading, the business has sales of over £130m annually. The transaction valued the company at over £200m.

About Bain Capital Credit

Bain Capital Credit is a leading global credit specialist with approximately $48 billion in assets under management. Bain Capital Credit invests across the full spectrum of strategies, including leveraged loans, high-yield bonds, distressed debt and special situations, private lending, structured products, non-performing loans, and majority and minority equity stakes. Founded in 1998 as a private, employee-owned firm, Bain Capital Credit’s experienced team of over 150 investment professionals seeks to identify attractive equity and credit investment opportunities across North America, Europe, and Asia–Pacific. In addition to credit, Bain Capital invests across asset classes including private equity, public equity, real estate and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.

About Henry McGovern, Steven K. Winegar and EBITDA Investments

Henry McGovern is the founder of AmRest Holdings SE, one of Europe’s leading foodservice companies, which under Henry’s leadership, grew to more than 2,300 restaurants, in 25 countries, with 55,000+ employees. Steven K. Winegar is the co-founder of Grupo Zena and the founder of Restauravia Grupo Empresarial (the latter was an owner of La Tagliatella – the most successful Italian dine-in concept in Spain). Steven and Henry have completed dozens of acquisitions in the foodservice sector. Partnering with founders and CEOs to scale their businesses. They are currently investors in Vapiano, Cook Unity and dean&david as well as alternative protein focused companies including BlueNalu, Eat Just, Impossible Foods and Memphis Meats. EBITDA Investments, the food ecosystem fund backed by Steven and Henry, is investing exclusively in foodservice and foodtech sector category leaders.

About Risk Capital Partners LLP

Risk Capital Partners was co-founded by Luke Johnson in 2001, and invests up to £10m of equity in established, mainly consumer, branded businesses based in the UK. It deploys solely the capital of its partners, so its interests are aligned with the founders and entrepreneurs whom it backs. It recently invested in Curious Brewery and gardening e-commerce play primrose.co.uk.

Media contacts:

GAIL’s Bakery

Tom Molnar
Email: [email protected]

Bain Capital Credit

Julia Tilley / Hazel Stevenson 07815 068 387 / 07986 009 720
Email: [email protected]

EBITDA Investments

Justyna Peryt
Email: [email protected]

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