Bay Area maker of Bachan's Japanese Barbecue Sauce selling for $400 million

"The Marzetti Company (Nasdaq: MZTI) announced Wednesday it will acquire Bachan's Inc., started in 2019 by Justin Gill who adapted a multigenerational recipe from his bachan (grandmother). That led to a line of grilling and dipping sauces with net sales last year of about $87 million and a three-year compound annual growth rate of over 48%. If the cash and financed purchase passes regulatory muster, it is set to close by the end of June."

"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, and I am honored to partner with The Marzetti Company for the next stage of making my vision for Bachan's a reality, Gill said in the news release."

"Marzetti said its interest in the brand is to expand the company's share in the sauce product category and provide new opportunities for its retail and foodservice distribution network. That company dates back to 1896, when the Marzetti family immigrated from Italy and opened their self-named restaurant in Columbus, Ohio. The eatery became known for its salad dressings and meat sauces, which became a side business that was sold in 1969 to Lancaster Colony Corp., later renamed The Marzetti Company."

The Marzetti Company agreed to buy Bachan's Inc. for $400 million, subject to regulatory approval, with the deal expected to close by the end of June. Bachan's, founded in 2019 by Justin Gill using his grandmother's multigenerational recipe, produced a line of grilling and dipping sauces that generated approximately $87 million in net sales last year and posted a three-year compound annual growth rate above 48%. Marzetti intends to increase its share of the sauce category and leverage its retail and foodservice distribution channels. Marzetti's portfolio includes branded dressings, croutons, rolls and licensed restaurant sauces and products.

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