Lancaster Colony Corporation has announced that its wholly-owned subsidiary, T. Marzetti Company, has acquired all the assets of Omni Baking Company LLC (“Omni Baking”) for a purchase price of USD25m.
The acquisition was funded internally with cash on hand and is not significant to the financial position or operating results of Lancaster Colony. The transaction closed on November 16. Omni Baking, based in New Jersey, has been a long-time supplier of products to Lancaster Colony’s frozen garlic bread operations, including New York BRAND Bakery Texas Toast. The transaction will provide Lancaster Colony with significantly improved control over the supply and production of its frozen garlic bread products in addition to future capacity expansion opportunities.
David A. Ciesinski, Lancaster Colony’s CEO, commented: “We are pleased to complete this strategically important transaction that leaves us better positioned to manage and control the future supply and growth of our frozen garlic bread operations. We evaluated a number of different scenarios for the continued expansion of New York Bakery, and determined this asset purchase to be the most practical and cost-effective solution for our long-term business needs. I would also like to extend a warm welcome to the Omni Baking employees as they join our family of Lancaster Colony companies.”