McWin Capital Partners, an investment firm focused on the food sector, is currently in discussions to acquire Gail’s, a well-known high-end bakery chain in the UK, as reported by Bloomberg.

The firm aims to take proactive steps ahead of a planned sale process for Gail’s. Recently, the owners of Gail’s engaged Goldman Sachs to facilitate an auction for the bakery, suggesting the company could be valued at around £500 million.

McWin Capital has previously invested in the parent company of Gail’s and specializes in backing pan-European food services and innovative food technology firms. The firm holds exclusive franchise rights for Subway and Popeyes in various European markets, along with the Japanese dining establishment Sticks’n’Sushi and the Italian-themed Big Mamma chain.

The original Gail’s bakery opened in Hampstead, north London, in 2005 and emerged from the Bread Factory, a wholesaler that began in the early 1990s supplying prestigious establishments, including restaurants owned by Gordon Ramsay.

Founder Gail Mejia was bought out by Luke Johnson, previously chairman of Patisserie Valerie, in 2011. Although Johnson still serves as chairman of Gail’s, he transferred a majority stake to the American private equity firm Bain Capital in 2021.

At that time, the bakery chain was valued at £200 million. Since then, the rapidly expanding business has established over 150 locations throughout the UK and aims to open numerous additional branches in the ongoing financial year.

Tom Molnar, the CEO of Gail’s and a former consultant at McKinsey, recognized the public’s increased financial capacity due to COVID-19 lockdown savings. He noted that consumer interest in food provenance has also significantly grown.

In August, Gail’s faced criticism regarding its expansion into certain London areas, including Walthamstow, with claims that its presence is leading to a loss of uniqueness in high streets.

Molnar addressed these concerns, stating: “We build small sites so they are a part of a diverse high street, so whenever I build a Gail’s, I think what it would be like if I was a resident here.”