McWin Capital eyes Gail’s in bid to pre-empt £500m auction

McWin Capital Partners, the European food-focused investment firm, is reported to be in early talks to acquire Gail’s, the much-loved but premium-priced UK bakery chain, according to a report by Bloomberg.

The news comes hot on the heels of Gail’s owners hiring Goldman Sachs to prepare an auction, amid widespread speculation that the brand could fetch as much as £500 million.

McWin Capital, already an investor in the bakery’s parent company, invests in pan-European food service and food-tech ventures. Its portfolio includes franchise rights for Subway and Popeyes in select European markets, as well as stakes in Japanese-inspired Sticks’n’Sushi and the Italian-themed Big Mamma group.

Gail’s opened its first bakery in Hampstead, north London, in 2005 as an offshoot of the Bread Factory, a wholesale bakery supplying top-tier restaurants including Gordon Ramsay’s. Founder Gail Mejia sold the business in 2011 to serial entrepreneur Luke Johnson, who still serves as chairman. American private equity firm Bain Capital acquired a majority stake in 2021, valuing Gail’s at £200 million at the time. The chain’s rapid growth means it now boasts more than 150 branches across the UK, with further expansion planned for the current financial year.

Under chief executive Tom Molnar, a former McKinsey consultant, Gail’s capitalised on shifting consumer behaviour during and after the pandemic, tapping into rising interest in artisanal food and transparency in supply chains. However, its expansion has not been without controversy. Critics have argued that its presence in neighbourhoods like Walthamstow, northeast London, contributes to the homogenisation of local high streets. Molnar countered that the brand’s outlets are small and integrated, designed to complement rather than overwhelm established local businesses.

Should McWin Capital’s talks lead to a pre-emptive acquisition, it may reshape the anticipated auction process and highlight the premium value investors place on fast-growing, upmarket food brands within the UK’s competitive retail landscape.

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McWin Capital eyes Gail’s in bid to pre-empt £500m auction