Starco Brands expands manufacturing with Custom Bakehouse acquisition
The deal adds new production capacity and strengthens Starco’s position in powdered foods, baking mixes, nutritional products, and private label manufacturing.
USA – Starco Brands, Inc. has completed the acquisition of Custom Bakehouse, adding new manufacturing capacity and expanding its range of consumer products as it continues to grow its business across food and nutrition categories.
The transaction closed on July 15 and gives Starco access to Custom Bakehouse’s expertise in powdered foods, nutritional blends, drink and hydration mixes, baking mixes, dry seasonings, and private label manufacturing. The acquisition also adds well known consumer brands, including Sticky Fingers and licensed Marie Callender’s baking mixes, to the company’s portfolio.
Custom Bakehouse operates a 75,000 square foot production facility in Santa Fe Springs, California. Starco said the site will support larger production volumes, product development, and closer links between manufacturing and its existing brands.
The company said the acquisition supports its plan to manage more stages of product development, from formulation and manufacturing to distribution, marketing, and retail sales. It also expects the deal to support future growth across its nutrition and wellness business, including powder based products and supplements.
“Custom Bakehouse has spent more than three decades earning a reputation for deep formulation and manufacturing excellence, and that is exactly the kind of scale and capability we look for,” said Ross Sklar, Chairman and Chief Executive Officer of Starco.
“We have always believed that manufacturing is far more than production, it is a strategic asset, an innovation hub and fuel for growth. Bringing Custom Bakehouse into Starco gives us direct control of more of the value chain, IP creation, manufacturing and distribution, and allows the Company to move fast across our portfolio. This is exactly the kind of acquisition we believe will compound value for our shareholders,” he added.
Starco said Custom Bakehouse will form the foundation of Starco Manufacturing, a new subsidiary that will become one of the company’s two main operating units alongside Starco Brands. The business will also include The Starco Group as the company expands its manufacturing operations.
The company believes the acquisition will improve operational flexibility, increase production capacity, and support future acquisitions while serving both private label customers and its own consumer brands.
Pasadena Private Lending, a non bank lender with a US$400 million portfolio, provided financing for the acquisition. “We were pleased to finance this acquisition for Starco. We admire their vertical integration model and are supportive of this transformative acquisition,” said Iain Whyte, Chairman and CEO of Pasadena Private Lending.
Craig Hallum advised the seller on the transaction.
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