US food group Lancaster Colony has struck a deal to buy sprouted grain bakery products company Angelic Bakehouse.
Angelic Bakehouse generates annual sales of approximately US$12m. Lancaster said the Milwaukee-based bakery is a “fast growth regional business” and a “great brand”. The business produces “premium” sprouted grain products, including sliced bread, dinner rolls, pizza crusts and wraps, Lancaster added. It will continue to be led by its founders, James and Jenny Marino.
The transaction is expected to close later this month and will be funded through cash-on-hand. Lancaster said the deal was not “material” to its financial position. The impact of the deal is expected to be “near neutral” for the current fiscal to 30 June. Further details were not disclosed.
“We are thrilled to add Angelic Bakehouse and their terrific lineup of non-GMO bakery products to our growing specialty foods business,” said Dave Ciesinski, Lancaster’s president and COO. “Angelic Bakehouse is a highly relevant, on-trend business that produces a variety of great tasting, nutritious, non-GMO bakery items featuring their proprietary sprouted mash ingredient crafted from an assortment of unique sprouted grains.”
Ciesinski said Lancaster expects to support Angelic’s growth through geographic and channel expansion. He also flagged the possibility of stepping up NPD efforts. “We are also excited about the opportunities that the Angelic Bakehouse sprouted mash base provides for product innovation, a recent example being the introduction of Angelic Bakehouse bread crisps in three different varieties,” he noted.