Marzetti acquires Bachan's for $400 million as retail sales slip
The condiment maker reported a 1.0% decline in consolidated net sales to $453.4 million for the fiscal third quarter.
Marzetti (MZTI), the condiment and dressing manufacturer, completed the acquisition of Bachan’s, Inc. on May 1, 2026, for $400 million. The company financed the purchase through a combination of cash and a $200 million term loan. Bachan’s reported net sales of approximately $87 million for the twelve months ended December 31, 2025.
The acquisition follows a fiscal third quarter ended March 31, 2026, characterized by diverging performance across its primary distribution channels. Consolidated net sales declined 1.0% to $453.4 million, compared with $457.8 million in the prior-year period. Adjusted consolidated net sales, which exclude non-core transition service agreement sales, fell 0.9% to $451.8 million.
Retail net sales fell 3.2% to $233.8 million during the quarter. This decline was partially offset by the foodservice segment, where net sales increased 1.5% to $219.6 million. Adjusted foodservice net sales grew 1.8% to $218.1 million.
Despite the dip in top-line revenue, the company reached a record consolidated gross profit of $107.2 million, an increase of $1.3 million, or 1.2%. Gross margin expanded approximately 50 basis points to 23.6%.
Operating results were pressured by rising overhead. SG&A expenses increased $5.4 million to $61.4 million. The company attributed this rise to $3.5 million in acquisition-related costs, up from $1.7 million in the previous year, as well as investments in personnel and information technology.
Consolidated operating income declined $3.3 million to $46.6 million. Adjusted operating income fell $2.3 million to $49.3 million. Net income per diluted share was $1.35 for the quarter, down from $1.49 in the prior-year period.
Marzetti maintained a quarterly cash dividend of $1.00 per share as of August 19, 2026, a payout level the company first established nine months earlier.