Angelic Bakehouse Inc. is planning a $10 million investment in its Cudahy facility to add additional capacity following the company’s acquisition last year by Ohio-based Lancaster Colony Corp.
The project would nearly double the size of the facility, bringing the total size up to 42,768 square feet. It would also allow for the addition of a second shift and 50 new jobs.
Angelic Bakehouse, makes breads, rolls, wraps and other baked goods using sprouted grains, was acquired for $35 million last year by Lancaster Colony. The deal also included an earn-out payment based on a pre-defined multiple of the business’ adjusted earnings in 2021. Former owners James and Jenny Marino stayed on to continue managing day-to-day operations. Jenny Marino said at the time Lancaster Colony would likely look to expand the facility.
The company currently has annual sales of around $12 million and Lancaster executives have said they plan to increase that figure in the near future, although they have not provided a specific target.
“There will be some capacity expansion needs for the business that we likely will start to address toward the end of this fiscal year as we move into next fiscal year,” John Gerlach, Lancaster executive chairman, said on the company’s second quarter earnings call in February when he was still chief executive officer.
The expansion will include a new employee break room, locker rooms, a new sprouting and equipment area, new dock doors for shipping, storage freezers and a new blast freezing system. The company would also add 20,800 square feet of parking space.
The project is expected to cost $6 million with the company also investing $4 million in equipment.
“The proposal was presented as part of an expansion program that will be phased in and completed over the next several years,” said Brian Biernat, Cudahy Director of Economic Development.
The Cudahy Plan Commission approved the expansion at its meeting last week.
