Marzetti has expanded its portfolio in the food and beverage industry by acquiring California-based Bachan’s for a substantial $400 million. This strategic move aligns with current consumer trends toward flavorful and healthier options.
Founded in 2019 by Justin Gill, Bachan’s is known for its Japanese-American-style barbecue and dipping sauces, generating approximately $87 million in sales last year. The company is headquartered in Sebastopol, California.
Marzetti announced this acquisition alongside its latest financial results on February 3. The firm reported a 1.7% increase in second-quarter sales, totaling $518 million, and a year-to-date rise of 3.6%, bringing the figure to $1.01 billion. Subject to regulatory approval, Marzetti anticipates completing the deal by June 30.
David Ciesinski, CEO of Marzetti, emphasized the significance of this acquisition: “This transaction will reinforce Marzetti’s position as a global leader in sauces by adding a premium brand that is exceptionally well aligned with evolving consumer preferences for global flavors and better-for-you products.” He also noted plans to broaden distribution, drive product innovation, and expand into new channels and categories.
Marzetti’s retail portfolio includes its namesake dressings and dips, as well as New York Bakery garlic bread and Sister Schubert’s bread rolls. The company also manufactures products for major foodservice brands like Subway, Texas Roadhouse, and Chick-fil-A.
Bachan’s founder and CEO Justin Gill expressed his pride in the company’s growth: “Over the last several years, building Bachan’s has allowed me to fulfill my childhood dream of bringing my family’s sauce to market. My team and I have been working incredibly hard to deliver on this vision of building the first iconic Japanese-American flavor brand.”
In terms of performance metrics, Marzetti’s retail sales dipped by 1.1% to $278 million in the second quarter, while out-of-home sales increased by 5.2% to $240.4 million. Its consolidated operating income saw a slight decline of 0.6% to $75.2 million. However, net income rose by 21% to $59.1 million, or $2.15 per diluted share, compared to $1.78 the previous year.
Marzetti reported $1.7 million in restructuring and impairment charges during the quarter concerning manufacturing equipment. Over six months, net income increased by 13.5% to $106.3 million, translating to $3.86 per diluted share, up from $3.40.
Previously known as Lancaster Colony, Marzetti has rebranded under Ciesinski’s leadership, solidifying its position in the dynamic food and drink business landscape.
