Bachan’s, the homegrown barbecue sauce that’s become a national sensation, was sold recently for $400 million. (Press Democrat file)
An Ohio company that brought the beloved special sauces of popular restaurant chains Chick-fil-A, Buffalo Wild Wings and Texas Roadhouse to store shelves has inked a $400 million deal to purchase the Sebastopol-based maker of fast-growing Bachan’s Japanese Barbecue Sauce.
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.
In addition to the Marzetti sauce brand, the company’s brands sold to stores and restaurants include New York Bakery croutons and garlic bread and Sister Schubert’s rolls. It also has other exclusive licenses to produce Olive Garden dressings, Arby’s and Subway sauces, and Texas Roadhouse dinner rolls.
Marzetti net sales last fiscal year, ended June 30, were $1.9 billion, up nearly 2% from a year before. The company’s stock price was $155.51 a share at the close of trading Wednesday, Feb. 4, down over 3%.
Originally published at Jeff Quackenbush