US-based baked-goods producer Brooklyn Brands has been snapped up for an undisclosed fee by Japanese bakery Taguchi.
Brooklyn Brands was part of advisory firm Astor Group, founded in 2015 to acquire small Brooklyn, New York-based bakeries.
Founders Seth Zalkin and Mickey Klein will continue to head the company from New York and all 200 Brooklyn Brands employees will stay on.
Zalkin confirmed to Just Food that the fee for the deal was eight figures in dollars.
The deal will see Taguchi take its products to the US market while Brooklyn Brands will sell bakery items including babkas and black-and-white cookies in Japan. Zalkin added that the company is looking to grow in New York and acquire other bakeries there.
Astor Group, founded in 2005, said in a release Brooklyn Brands is “actively seeking additional acquisitions that provide similar or adjacent product categories, intellectual property and manufacturing facilities as it seeks to build the premier baked goods platform in the US”.
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By GlobalDataThis deal is the “first noteworthy acquisition” of a US dessert manufacturer by a Japanese bakery, according to the release.
Zalkin, also a managing partner of Astor Group, said: “Brooklyn Brands has earned a passionate consumer following, and we’re elated by the opportunity to expand our global reach with Taguchi’s support. This transaction represents a milestone for both Astor Group and Brooklyn Brands, and we are confident that Taguchi’s resources and manufacturing expertise will provide rocket fuel to Brooklyn Brands’ growth.”
Brooklyn Brands produces over 18,000 babkas daily and distributes them to more than 10,000 US retailers including Kroger and Whole Foods.
Klein, also managing partner at Astor, stated: “Consistent with Taguchi’s mission, providing an authentic, delicious indulgence has been at the heart of Brooklyn Brands since we acquired the business nearly eight years ago. Brooklyn Brands will continue to build the bakery business and offer the same babkas, cookies and other baked confections to more consumers across North America, Asia, and around the world.”
Brooklyn Brands also operates baked-goods brand Lilly’s Baking Company which was founded in 2005 in Brooklyn. Zalkin told Just Food in an email that Brooklyn Brands will be introducing another brand early next year.
Founded in 1949, Taguchi is a third-generation family bakery business. The company’s sweet pastries and snacks are sold in retail and convenience stores worldwide including the US, Canada, Brazil, Australia, New Zealand, Malaysia, Thailand, Singapore and China.
