Lancaster Colony (LANC) Enters Agreement to Acquire Angelic Bakehouse

November 3, 2016 8:05 AM EDT

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Lancaster Colony Corporation (Nasdaq: LANC) announced that its wholly-owned subsidiary, T. Marzetti Company, has entered into a definitive agreement to acquire all of the assets of Angelic Bakehouse, Inc., a manufacturer and marketer of premium sprouted grain bakery products. The transaction is expected to close later this month. The acquisition will be funded internally with cash on hand and is not material to the financial position of Lancaster Colony Corporation. Annual sales for Angelic Bakehouse are approximately $12 million and the impact of the acquisition on Lancaster Colony's earnings per share is expected to be near neutral for the current fiscal year ending June 30, 2017. Other terms of the transaction are not disclosed.

The founders of Angelic Bakehouse, husband and wife James and Jenny Marino, have built Angelic Bakehouse from a Milwaukee-based bakery they acquired in 2009 into a fast growth regional business and great brand with a variety of premium sprouted grain bakery products, including sliced bread, dinner rolls, pizza crusts and wraps. James and Jenny Marino will continue to lead the Angelic Bakehouse business post-closing.

Dave Ciesinski, Lancaster Colony's President and Chief Operating Officer, stated "We are thrilled to add Angelic Bakehouse and their terrific lineup of non-GMO bakery products to our growing specialty foods business. 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. As a regional retail brand in the Midwestern U.S., Angelic Bakehouse has placement in the growing specialty deli/bakery section of the grocery store. Beyond growth through geographic and channel expansion, 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. We are very pleased to welcome the Angelic Bakehouse employees to the family of Lancaster Colony companies and look forward to a successful future together."



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