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Johnson working with lenders to knead a deal for Bread Holdings: Sky News
Posted on Thursday, 07 November 2019 11:06
Luke Johnson is working with investment bank Nomura to review strategic options for Gail’s bakery owner Bread Holdings that could make dough of USD 150.00 million if sold, according to Sky News.
Citing city sources, the broadcaster observed that a sales process could begin in the next few months.
Reportedly, a disposal of Bread Holdings was reviewed two years ago.
Johnson, the owner of Risk Capital Partners, has faced some struggles as of late, following the demolition of Patisserie Valerie earlier this year.
The chain of high-end bakeries came under examination last year for accounting fraud with a probe by a watchdog and a criminal investigation by the Series Fraud Office.
Johnson had tried to rescue Patisserie Valerie by injecting a GBP 10.00 million emergency loan to keep it out of administration; however, the company ended up being broken up and sold to different buyers in February 2019.
Sky News observed that the potential sale of Bread Holdings comes as other bakery owners have been struggling with higher input prices due to the weaker pound.
Risk picked up the company through a management buyout, including chief executive Tom Molnar, in 2011.
The group controls the Bread Factory and Gail’s Artisan Bakery, whose bread is also available in Waitrose, Harvey Nichols and Ocado.
According to Bread Holdings’ latest accounts on Companies House, the group generated profit before tax of GBP 1.04 million on revenue of USD 86.38 million in the 12 months to 28th February 2018.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 79 deals targeting UK-based food manufacturers announced in 2019 to date.
In the largest of these, Saputo Dairy UK acquired Dairy Crest Group for GBP 975.00 million.
Other targets included Tilda, Bakery Foods, Kettle Foods and Katsouris Brothers.
© Zephus Ltd