The baker that makes Paul Hollywood part-baked bread has been taken over by Mexican firm Grupo Bimbo in a deal thought to be worth more than £300m after four years of rapid growth in the USA and the UK.
The Manchester-based St Pierre Groupe won £8m investment from BGF in November 2018 which helped it to kickstart its international growth. Now BGF has announced the sale to Grupo Bimbo, described by trade bible The Grocer as the world's biggest baker.
The value of the deal has not been disclosed, but The Grocer says the deal was worth more than £300m while BGF said: "the exit has generated a money multiple of 9.6x". St Pierre will operate as an independent business within Grupo Bimbo.
St Pierre Groupe was founded in 1986 by Paul Baker and Jeremy Gilboy. It sells baked goods under three brands – St Pierre, Baker Street and Paul Hollywood - with products stocked in more than 35,000 stores worldwide.
READ MORE: Strong sales of Paul Hollywood part-baked bread helps group continue rise
Over BGF's four-year investment period, the business has rapidly grown internationally - particularly in the USA, which now makes up some 50% of its annual sales. The group has also grown its product range and secured listings with more retailers in the UK and the US, helping revenues grow from £69m in 2018 to £111.5m in 2021.
Meanwhile staffing has more than doubled, with St Pierre now employing more than 70 people.
Grupo Bimbo was founded in Mexico City in the 1940s and today has operations worldwide.
Paul Baker, co-founder of St Pierre Groupe, said: “BGF has been an excellent partner and their investment in 2018 was the catalyst to accelerating our growth and helping us realise our goals to successfully scale operations here in the UK, as well as achieving international expansion into key markets and building strong relationships with leading retailers around the world.”
Ben Barker, Head of Portfolio North at BGF, said: “We’re delighted to announce an outstanding exit of St Pierre Groupe, following a highly successful four-year investment period that has seen the business rapidly scale its branded sales and expand its presence across the USA through new listings with leading retailers.
“We’re incredibly proud of the impact St Pierre Groupe has had on the region, increasing its headcount and building a strong trans-Atlantic brand here in the North West, which is testament to the management team and local talent available. It's been a privilege to be part of the company’s fantastic growth journey, we wish the team all the best and look forward to seeing what the future holds for the business.”
Andy Gregory, CEO of BGF, added: "The St Pierre deal is a standout exit that demonstrates the strength and depth of the BGF investment model, delivering excellent returns for all. The business has proven its growth potential, and the results achieved during our investment period evidence the team’s commitment to growth and the solid foundations that we strive to build with our portfolio businesses to help them achieve their aims."
A spokesperson for Grupo Bimbo UK said: "We are delighted to be welcoming the St Pierre Groupe into the Grupo Bimbo fold. As the biggest brioche brand in the UK and America, it has already seen tremendous success within the category.
"Whilst the business has been fully acquired by Grupo Bimbo it will continue to operate independently. We look forward to the success that both businesses will have as we move into the future together."
BGF said the shareholders were advised by investment bank Harris Williams, while Pinsent Masons provided sell-side legal advice and vendor financial due diligence was provided by KPMG. Commercial vendor diligence was provided by PWC and McKinsey.
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