Westerville, Ohio-based The Marzetti Co. has entered into an agreement to acquire Bachan’s Inc., a Japanese barbecue sauce brand, for $400 million.
The transaction is expected to close before Marzetti’s fiscal year end of June 30, subject to regulatory approval and customary closing conditions. Marzetti intends to fund the acquisition with cash on hand and additional financing.
Bachan’s generated about $87 million in net sales for the 12 months ended Dec. 31.
“We are very excited to share our plans to acquire Bachan’s as a strategic extension of our portfolio that will further strengthen our position in the dynamic condiment and sauce category,” said David A. Ciesinski, CEO at The Marzetti Co.
“Bachan’s created its original Japanese Barbecue Sauce from a multi-generational family recipe passed down to its founder, Justin Gill, who has done a tremendous job scaling the brand. Over time, we intend to further broaden distribution, support continued product innovation, and thoughtfully extend the brand into new channels and adjacent categories.
“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. We look forward to welcoming the Bachan’s team to the Marzetti family.”
Launched in 2019, Bachan’s is headquartered in Sebastopol, California.
“Over the last several years, building Bachan’s has allowed me to fulfill my childhood dream of bringing my family’s sauce to market,” Gill said. “My team and I have been working incredibly hard to deliver on this vision of building the first iconic Japanese-American flavor brand, and I am honored to partner with The Marzetti Co. for the next stage of making my vision for Bachan’s a reality.”
Bachan’s barbecue sauces and dipping sauces are made with high-quality, non-GMO ingredients and minimal processing.
The Marzetti Co. manufactures and markets specialty food products for retail and foodservice channels. Retail brands include Marzetti dressings and dips, New York Bakery garlic breads and Sister Schubert’s dinner rolls, plus a growing portfolio of exclusive license agreements including Olive Garden dressings, Chick-fil-A sauces and dressings, Buffalo Wild Wings sauces, Arby’s sauces, Subway sauces, and Texas Roadhouse steak sauces and dinner rolls.
In the foodservice channel, Marzetti supplies sauces, dressings, breads and pasta to many of the top restaurant chains in the United States.