Private equity firm Mayfair is set to expand its bakery portfolio after agreeing to a takeover of Azeda, owner of Pat the Baker and Irish Pride brands.
If approved by Ireland’s M&A watchdog, the Competition and Consumer Protection Commission (CCPC), the deal will see the two join fellow Ireland-based brands Promise Gluten Free and Gallaghers Bakehouse under the Ceres Group, Mayfair’s holding company for its bakery assets.
Also included in the consortium backed by Mayfair Equity Partners are two American firms – Rudi’s Bakery in Colorado and Three Bakers in Pennsylvania.
London-based Mayfair notified the CCPC of the proposed acquisition on 23 December 2024, with submissions for comment from third parties closing last week as part of phase 1 of the investigation. Completion of the transaction also remains subject to customary closing conditions.
If approved, the takeover will see Pat the Baker and Irish Pride enter into a manufacturing agreement with Promise Gluten Free and Gallaghers Bakehouse, which operate out of the same site in Cashel near Ardara, County Donegal. This is aimed at solving capacity constraints of the fast-growing Gallaghers brand, whose range of sourdough loaves, soda bread, baps, and buns is supplied to retailers in the UK and Ireland including Tesco, Asda, Spar, Dunnes, Centra, and SuperValu.
Both Pat the Baker and Irish Pride will reportedly retain existing management teams, operational independence, and distinct brands under Ceres.
Pat the Baker was founded by Pat Higgins in 1953, and currently employs more than 400 staff at its production site in Granard, County Longford, from which it supplies a variety of bread, breakfast goods, buns, rolls and baps to all major supermarkets across the island of Ireland. It also has eight distribution centres.
The Higgins family remained in control of the business following Pat’s passing in 2007, and subsequently spent £4.9m on buying Irish Pride out of receivership in 2015. The move saw it become the second-biggest bakery business in Ireland behind Brennan’s, taking over the plant in Taghmon, County Wexford, while another bakery in Ballinrobe, County Mayo was closed down.
Promise Gluten Free was founded by Declan Gallagher in 2011, with Mayfair purchasing a controlling stake six years later. It supplies a range of gluten-free loaves, sourdough, brioche, bagels, muffins, wraps, and cakes to retail customers in Ireland and the UK including Sainsbury’s, Tesco, Morrisons, Aldi, and Lidl.
A request for comment on the transaction was declined by all parties involved.
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