Speciality food group T Marzetti Company has acquired all assets of Omni Baking Company for $25m, subject to post-closing adjustments.
Marzetti Company is a wholly-owned subsidiary of US-based food manufacturer Lancaster Colony.
Lancaster Colony noted that the acquisition was funded internally using available cash on hand and is not significant to the company’s financial position or operating results.
Omni Baking has been supplying products to Lancaster Colony’s frozen garlic bread operations, including New York BRAND Bakery Texas Toast.
Lancaster Colony CEO David Ciesinski said: “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.”
Lancaster Colony expects to improve control over the supply of its frozen garlic bread products in addition to future capacity expansion opportunities.
Last month, T. Marzetti Company acquired all the assets of Bantam Bagels, which produces frozen mini stuffed bagels and mini stuffed pancakes sold to both retail and foodservice channels.
