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BGF completes standout exit of St Pierre Groupe
BGF has announced the successful exit of St Pierre Groupe, an international market leader in the bakery sector, following its acquisition by Grupo Bimbo, one of the world’s largest baked goods and snacking companies.
BGF originally backed St Pierre Groupe with an £8 million investment in November 2018. The exit has generated a money multiple of 9.6x and an IRR of 85% for BGF.
Headquartered in Manchester, St Pierre Groupe was founded in 1986 by Paul Baker and Jeremy Gilboy. As a specialist branded supplier to the bakery industry, the company provides a range of high-quality products under three distinctive brands – St Pierre, Baker Street and Paul Hollywood. Its products are stocked in over 35,000 retail and wholesale stores worldwide, as well as online in the UK, USA, Europe and the Middle East.
During BGF’s investment period, the business has successfully scaled its operations internationally, including a rapid expansion programme in the USA which now constitutes approximately 50% of the business’ annual sales revenue.
St Pierre Groupe has also secured new listings with several leading retailers in the UK and USA, as well as expanding its product range across multiple categories, with revenues increasing from £69 million in 2018 to £111.5 million in 2021.
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.
Paul Baker, co-founder of St Pierre Groupe
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.”
The overall headcount of the business has more than doubled during this time, with over 70 employees today. Founders Paul Baker and Jeremy Gilboy have continued to strongly support the business during its growth journey.
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.”
The shareholders were advised by investment bank Harris Williams. 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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