McWin Capital Partners, the European food-focused investment firm, is reportedly in early talks to acquire the much-loved but high-priced British bakery chain, according to a report by Bloomberg.
The news comes on the heels of Gale’s owners appointing Goldman Sachs to set up an auction, amid widespread speculation that the brand could fetch up to £500m.
McWin Capital, which is already an investor in the bakery’s parent company, invests in food services and food technology ventures across Europe. 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.
Giles opened its first bakery in Hampstead, north London, in 2005 as a branch of The Bread Factory, a wholesale bakery supplying first-class restaurants including Gordon Ramsay’s. Founder Gil Mejia sold the company in 2011 to serial entrepreneur Luke Johnson, who still serves as chairman. US private equity firm Bain Capital took a majority stake in 2021, valuing Gail’s business at £200m at the time. The chain’s rapid growth means it now has more than 150 branches across the UK, with further expansion planned for the current financial year.
Under CEO Tom Molnar, a former McKinsey consultant, Jill has capitalized on changing consumer behavior during and after the pandemic, capitalizing on growing interest in artisanal foods and transparency in supply chains. However, its expansion has not been without controversy. Critics have argued that its presence in boroughs such as Walthamstow, north-east London, contributes to the homogeneity of local high streets. Molnar responded that the brand’s outlets are small and integrated, designed to complement existing local businesses rather than overwhelm them.
If McWin Capital’s talks lead to a pre-emptive takeover, it could reshape the anticipated auction process and highlight the premium value investors place on fast-growing luxury food brands within the UK’s competitive retail landscape.
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