Specifically, this is the first investment made by this fund, in which Manuel Lao (through his investment holding company Nortia Capital) was the lead investor.
McWin Food Ecosystem, the fund created by Henry McGovern and Steven K. Winegar, founder of AmRest and co-founder of Zena Group, respectively, has acquired, together with Bain Capital Credit, a majority share in one of the leading chains in the artisan bakery and pastry sector, Gail’s Bakery, through its parent company Bread Holdings.
Specifically, this is the first investment made by this fund, in which Manuel Lao (through his investment holding company Nortia Capital) was a reference investor, as reported in a statement.
McWin Food Ecosystem Fund was created with the intention of providing an innovative investment platform in Food Service and Food Tech that provides access to capital to high potential companies seeking development and expansion, offering the added value of the know-how and years of business experience of McWin Food Ecosystem Fund executives.
Gail’s Bakery was established in the early 1990s to supply quality products to high-end chefs and restaurants. In 2003, it started in the world of artisan wholesale bakery and has been growing organically.
In 2005, it opened its first shop in Hampstead to bring its artisan, chef-quality bakery and artisan principles to a wider audience. Shortly after, it had seven speciality bakeries in London.
Over the last ten years, the business has grown to reach 73 establishments offering gourmet patisserie and bakery products and coffee tastings. Gail’s has multiple sales channels ranging from the traditional ‘dine-in’ (accounting for 35% of its sales), food (with chains such as Waitrose and Sainsbury’s), the restaurant sector (ranging from independent restaurants to chains and Michelin-starred establishments), luxury hotels and even airlines.
With this investment, McWin Food Ecosystem and Bain Capital aim to provide continuity and support the company’s growth in the coming years.
The deal comes in the wake of a strong rebound in sales at Gail’s which, despite the impact of the pandemic on the UK food service sector, has managed to maintain its leadership by focusing its efforts on growing its digital business so that it can continue to operate at the highest level, without suspending its service.
Experts estimate that revenues in the current financial year will exceed pre-pandemic levels and that the company’s profitability will reach a record in the 12 months to February 2022.
“We have been closely following the company’s development for years. Perhaps one of the aspects that impressed us most favourably was the exemplary business management of Gail’s during the pandemic. We are confident that this collaboration, as well as our knowledge and experience in the sector, will be of great use to Gail’s in its new phase of development,” said the founders of the McWin Food Ecosystem Fund.
The investment in Gail’s Bakery is an example of the investment philosophy that McWin Food Ecosystem Fund will follow, which is closely aligned with that of its anchor investor, Nortia Capital, and which allows Manuel Lao’s investment holding company to continue developing its line of investments in sustainable sectors.