Lancaster Colony to Acquire Atlanta Sauce and Dressing Facility

Lancaster Colony Corporation to Acquire Atlanta Sauce and Dressing Facility

Lancaster Colony Corporation (Nasdaq: LANC) has announced its plan to acquire a sauce and dressing production facility from Winland Foods, Inc., located in Atlanta, Georgia. The transaction is anticipated to close in the first quarter of 2025, pending customary closing conditions, with a purchase price of approximately $75 million. The facility spans 300,000 square feet, with 250,000 square feet dedicated to manufacturing.

David A. Ciesinski, CEO of Lancaster Colony, stated, "We are very pleased to have reached an agreement to acquire this production facility as an important strategic addition to our manufacturing network. This facility will benefit our core sauce and dressing operations through improved operational efficiency, incremental capacity, and closer proximity to certain core customers while enhancing our manufacturing network from a business continuity standpoint. We evaluated several scenarios to support our continued growth and determined this asset purchase to be the most practical and cost-effective solution for our long-term business needs. We look forward to welcoming the plant employees to the Marzetti team."

Lancaster Colony, along with its subsidiary T. Marzetti Company, specializes in producing and selling specialty food products for retail and foodservice channels. Their brands include Marzetti® dressings and dips, New York Bakery™ garlic breads, and Sister Schubert’s® dinner rolls. The company also has exclusive license agreements with brands like Olive Garden® and Chick-fil-A® for sauces and dressings.

The acquisition is expected to enhance Lancaster Colony's manufacturing capabilities and support its growth strategy by providing increased capacity and efficiency. However, the transaction is subject to potential risks, including the successful integration of the facility and fluctuations in supply chain costs.

Keywords: Lancaster Colony Corporation, sauce and dressing production, Atlanta facility acquisition, Winland Foods, manufacturing network, T. Marzetti Company, foodservice channels, specialty food products, operational efficiency, business continuity, growth strategy.