T Marzetti Company purchases Bantam Bagels

Speciality food producer T Marzetti Company has acquired all the assets of Bantam Bagels for $34m.

Bantam Bagels produces and markets frozen mini stuffed bagels and pancakes that are sold to both the retail and foodservice channels. Marzetti company is a wholly-owned subsidiary of US-based food company Lancaster Colony.

The deal also includes contingent consideration in the form of an additional earn-out payment that is tied to the business’ future financial performance.

Lancaster Colony CEO Dave Ciesinski said: “We are extremely excited to add Bantam Bagels to our speciality 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.”

The acquisition is expected to complement Lancaster Colony’s portfolio of frozen bread products.

Lancaster Colony reported that for the fiscal year ended 30 June, consolidated net sales increased 1.8%, rising from $1.202bn to $1.223bn.

Consolidated operating income for the same period fell to $172.1m from $174.7m last year.