Bain Capital, in partnership with EBITDA Investments, has acquired a controlling stake in Bread Holdings from Risk Capital Partners (RCP) and other shareholders. The strategic rationale is to capitalize on GAIL’s post-pandemic sales rebound and its proven "neighborhood" model, which saw profitability hit record levels despite the UK’s lockdowns. Luke Johnson, the outgoing majority owner, rolled over a 15% stake to remain on the Board, ensuring leadership continuity alongside CEO Tom Molnar. The investment is intended to fund a rapid expansion plan to increase the bakery network from 73 to over 100 sites within three years. Notably, part of the proceeds was distributed to nearly 2,000 employees, reflecting the group’s culture-driven approach to value creation.

GAIL’S (BREAD HOLDINGS), which reported an EBITDA margin of LOGIN in 2021, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the Retail & Consumer sector (10.9x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.