The Marzetti Co. entered into an agreement to acquire Bachan’s, Inc., a Japanese barbecue sauce brand, for $400 million, the Westerville, Ohio-based company announced Feb. 2.
Bachan’s generated about $87 million in net sales for the 12 months ended Dec. 31. 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.
The acquisition reinforces Marzetti’s expanding position in the sauce category and is expected to provide growth opportunities through Marzetti’s retail and foodservice distribution network, supply chain capabilities, marketing resources and culinary expertise.
“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.”
Goldman Sachs & Co. LLC acted as exclusive financial advisor to The Marzetti Co., with King & Spalding LLP serving as legal counsel. Centerview Partners LLC acted as exclusive financial advisor to Bachan’s, Inc., with Wachtell, Lipton, Rosen & Katz LLP serving as legal counsel.
Bachan’s was launched in 2019 and is headquartered in Sebastopol, California. The brand was born from Justin Gill’s multi-generational family barbecue sauce recipe that was passed down to him by his bachan (grandma). Growing up, the sweet and savory sauce was the centerpiece of family meals and gatherings.
“Over the last several years, building Bachan’s has allowed me to fulfill my childhood dream of bringing my family’s sauce to market,” said Justin Gill, founder and CEO of Bachan’s. “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 brand currently offers multiple sauce varieties featuring bold, fresh, umami flavor and clean ingredients inspired by the original family recipe.
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.