Lancaster Colony Corporation has announced that its wholly-owned subsidiary, T. Marzetti Company, has acquired all the assets of Bantam Bagels, LLC.
Bantam Bagels is a producer and marketer of frozen mini stuffed bagels and mini stuffed pancakes sold to both the retail and foodservice channels. Annual net sales for Bantam Bagels are approximately USD20m and the impact of the acquisition on Lancaster Colony’s earnings per share is expected to be about neutral for the current fiscal year ending June 30, 2019, according to a company press release.
In addition to the base purchase price of USD34m, which is subject to post-closing adjustments, the transaction also includes contingent consideration in the form of an additional earn-out payment that is tied to the future financial performance of the business. Other terms of the transaction are not yet disclosed.
Bantam Bagels, a New York City based, entrepreneur-founded company is noted for reinventing the bagel and growing its distribution from one small shop in New York City’s West Village to nationwide distribution in traditional grocery, club stores, e-commerce and foodservice. Notably, in the foodservice channel, Bantam Bagels® bagel bites are available at Starbucks® cafes nationwide.
“Bantam Bagels reinvents iconic foods, bringing innovation, portability and convenience to the breakfast sector. Built around taste and quality first, Bantam’s mini stuffed bagels, pancakes and Egg Bites add disruptive innovation to Lancaster Colony’s core portfolio of frozen bread products and provide a strong complement to the authenticity and quality of Lancaster Colony’s well-established New York BRAND Bakery® and Sister Schubert’s® brands,” the company said.
Dave Ciesinski, Lancaster Colony’s CEO, commented “We are extremely excited to add Bantam Bagels to our specialty foods business. Bantam Bagels is a fast-emerging company that provides us with an entry into the large and growing frozen breakfast category. Their established relationship with Starbucks in the foodservice channel is another positive that positions Bantam Bagels for future expansion. We are thrilled to welcome Nick, Elyse and Bantam Bagels to our family of Lancaster Colony companies and look forward to a successful future together.”