Relevant Documents:
FY’20 Report
Bain Press Release
Risk Capital Press Release
Investor Bain Capital Credit and hospitality fund EBITDA Investments have acquired Bread Holdings, the parent company of Gail’s Bakery, from Risk Capital, according to a release from Risk Capital. The transaction valued the group at around £200 million.
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Investment bank Nomura ran the auction process and marketed Bread Holdings off an EBITDA of around £20 million, sources told Reorg. Some direct lenders were following the deal, which was expected to include debt financing. The transaction is understood to be purely equity-funded at present, sources said.
Bain said that Bread Holdings will distribute part of the sale proceeds to its 2,000 employees as a recognition of their contribution to the group.
Former owner Risk Capital acquired a majority stake in Bread Holdings in 2011 and the sponsor
said revenue has risen by 6x since its takeover. Risk Capital Chairman Luke Johnson has retained a stake in the company.
In the year to Feb. 29, 2020, Bread Holdings’ revenue rose 16% year over year to £116.4 million and adjusted EBITDA jumped 18.7% year over year to £13.6 million. As of Feb. 29 2020, Bread Holdings reported interest bearing loans and borrowings of £32.5 million, including £14.4 million of secured bank debt.
Bread Holdings operates 73 bakeries across the U.K. under the Gail’s Bakery brand and also sells baked goods through its wholesale business.
--Lara Gibson, Kerstin Kubanek