According to a report from Bloomberg, McWin Capital Partners, the European food-focused investment firm, is said to be in early talks to acquire Gail’s, the beloved but pricier British bakery chain.
The news comes after Gail’s owners hired 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 companies. The portfolio includes franchise rights for Subway and Popeyes in select European markets, as well as interests 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 restaurants including Gordon Ramsay’s. Founder Gail Mejia sold the company in 2011 to serial entrepreneur Luke Johnson, who remains chairman. US private equity firm Bain Capital acquired a majority stake in 2021, valuing Gail’s at £200 million at the time. Due to the chain’s rapid growth, it now has more than 150 branches in the UK, with further expansion planned for the current financial year.
Under CEO Tom Molnar, a former McKinsey consultant, Gail’s took advantage of changing consumer behavior during and after the pandemic, capitalizing on rising interest in artisanal foods and transparency in supply chains. However, its expansion has not been without controversy. Critics have argued that its presence in areas such as Walthamstow, north-east 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 takeover, it could reshape the expected auction process and spotlight the premium value investors place on fast-growing, higher-priced food brands within Britain’s competitive retail landscape.