Lancaster Colony Acquires Angelic Bakehouse, Inc.
COLUMBUS, Ohio, Nov. 3, 2016 /PRNewswire/ -- Lancaster Colony Corporation (Nasdaq: LANC) announced today 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."
About Lancaster Colony Corporation
Lancaster Colony Corporation is a manufacturer and marketer of specialty food products for the retail and foodservice markets.
About Angelic Bakehouse
Angelic Bakehouse is a manufacturer and marketer of branded premium and non-GMO sprouted grain bakery products primarily for the retail markets.
Forward-Looking Statements
We desire to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). This news release contains various "forward-looking statements" within the meaning of the PSLRA and other applicable securities laws. Such statements can be identified by the use of the forward-looking words "anticipate," "estimate," "project," "believe," "intend," "plan," "expect," "hope" or similar words. These statements discuss future expectations; contain projections regarding future developments, operations or financial conditions; or state other forward-looking information. Such statements are based upon assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, expected future developments; and other factors we believe to be appropriate. These forward-looking statements involve various important risks, uncertainties and other factors, many of which are beyond our control, which could cause our actual results to differ materially from those expressed in the forward-looking statements. Some of the key factors that could cause actual results to differ materially from those expressed in the forward-looking statements include:
- the ability to meet the closing conditions to the acquisition;
- delay in closing the acquisition;
- the ability to successfully integrate the acquisition of Angelic Bakehouse, Inc. and subsequently grow the business;
- the potential for loss of larger programs or key customer relationships;
- the effect of consolidation of customers within key market channels;
- the success and cost of new product development efforts;
- the lack of market acceptance of new products;
- price and product competition;
- the reaction of customers or consumers to the effect of price increases we may implement;
- the possible occurrence of product recalls or other defective or mislabeled product costs;
- changes in demand for our products, which may result from loss of brand reputation or customer goodwill;
- maintenance of competitive position with respect to other manufacturers;
- the extent to which future business acquisitions are completed and acceptably integrated;
- fluctuations in the cost and availability of ingredients and packaging;
- capacity constraints that may affect our ability to meet demand or may increase our costs;
- dependence on contract manufacturers;
- stability of labor relations;
- adverse changes in freight, energy or other costs of producing, distributing or transporting our products;
- dependence on key personnel and changes in key personnel;
- changes in our cash flow or use of cash in various business activities;
- changes in estimates in critical accounting judgments;
- the outcome of any litigation or arbitration; and
- risks related to other factors described under "Risk Factors" in other reports and statements filed by us with the Securities and Exchange Commission, including without limitation our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q (available at www.sec.gov).
Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update such forward-looking statements, except as required by law. Management believes these forward-looking statements to be reasonable; however, you should not place undue reliance on statements that are based on current expectations.
SOURCE Lancaster Colony Corporation
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