Patisserie Valerie eyes up Gail's takeover bid

By Laura Mullan
Patisserie Valerie is reportedly planning to tap investors for £35mn to buy Bread Holdings, the parent company of artisan bakery chain Gail’s. Patis...

Patisserie Valerie is reportedly planning to tap investors for £35mn to buy Bread Holdings, the parent company of artisan bakery chain Gail’s.

Patisserie Holdings, which is listed on the London Stock Exchange (LSE), has a current market value of just over £350mn and, as a result, it could organise the placing without giving existing shareholders the right to pre-empt it.

SEE ALSO:

Entrepreneur Luke Johnson, chairman of Patisserie, has a majority stake in Bread Holdings, which includes the chain of artisan cafes and wholesalers Bread Factory.

A deal is unlikely to be agreed until March, according to insiders, and Mr. Johnson will not be involved in the negotiations because of the potential of a conflict of interest.

According to industry sources, Bread Holdings, which includes Gail’s and wholesale business Bread Factory, could have a price tag value of around £150mn.

Following the reported takeover talks, Patisserie Valerie's’ share value rose sharply.

According to MCA’s Branded Bakery Market Analysis, sales in the bakery segment were predicted to grow 3.6% in 2017, with the market set to reach a value of £1.4bn.

Share

Featured Articles

Livestock data management platform Breedr raises £12mn

Breedr helps farmers improve their livestock productivity & sustainability. Investbridge Capital led a £12mn funding round to build better farm trading

Coca-Cola, Diginex & Reckitt tech to support supply chains

Respect for human rights is critical to good business, says Coca-Cola’s Paul Lalli, as the company joins diginexLUMEN to catch supply chain forced labour

Luxury food manufacturer Venchi on sustainable packaging

Cècile Osti, of luxury chocolate manufacturer Venchi, on Easter 2022, Sorrento lemons, sustainable packaging, natural ingredients & the pleasure of food

How has the pandemic affected sales at General Mills?

Food

Morrisons partners with Nestle in sustainability scheme

Retail

PepsiCo Launches pep+ a Strategic End-to-End Transformation

Drink