London-based PE firm Mayfair is bulking up its bakery assets after striking a deal to add Irish brands Pat the Baker and Irish Pride to its portfolio, which already includes Promise Gluten Free and Gallaghers Bakehouse.
Ceres Group – which is the holding company for Mayfair’s consortium of baked goods businesses – agreed to take control of Azeda, the owner of Pat the Baker and Irish Pride, just ahead of the Christmas break.
The PE firm notified Ireland’s deal watchdog, the Competition and Consumer Protection Commission (CCPC), of the merger on the 23 December.
Pat the Baker can trace its history back to 1953 when it was founded by Pat Higgins. The company, which employs more than 400 staff, is one of the main suppliers of bread and other bakery items to all of the major supermarkets in Ireland.
It became the second-largest bakery in Ireland when it acquired Irish Pride in 2015, sitting just behind market leader Brennan’s.
The deal is now subject to approval by the CCPC, with submissions for comment from third parties due to close today (8 January) as part of the phase 1 investigation.
According to sources close to the matter, the deal would solve manufacturing capacity constraints for Promise and Gallaghers, while also meeting growing consumer demand.
It is also understood that each company will retain existing management teams, operational independence and distinct brands under Ceres ownership.
Mayfair acquired a controlling stake in Donegal-based Promise in 2017 and bolted on two US bakery brands – Rudi’s Bakery in Colorado and Three Bakers in Pennsylvania – to accelerate momentum in North America.
The gluten-free bread maker, founded in 2011, supplies a range of loaves, sourdoughs, brioche, bagels, flatbreads and cakes under the Promise, PureBred and Gallagher’s Bakery brands.
Alongside its business in Ireland and internationally, the business also trades with Tesco, Sainsbury’s, Morrisons, Aldi and Lidl in the UK.
Mayfair tried to exit Promise last year, engaging bankers at Lincoln International to run a formal auction process, as revealed by The Grocer at the time. However, challenges in the wider M&A market led to difficulties in getting a deal away, with Mayfair opting to pause the process. It is understood the PE firm will try again at some stage this year.
Completion of the transaction also remains subject to customary closing conditions.
All parties involved declined to comment.
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