M&A
confidence high
sentiment positive
materiality 0.75
Starco Brands acquires Custom Bakehouse for $8M cash plus earnout; expects $20M annual revenue addition
Starco Brands, Inc.
- Acquired Custom Bakehouse (Custom Foods) for $8M cash plus up to $2.5M earnout based on 2027 net revenue.
- Financed with $11M term loan from Pasadena Private Lending, plus $3M revolver and $4M accordion feature.
- Custom Bakehouse expected to add ~$20M annual revenue; operates 75,000 sq ft facility in Santa Fe Springs, CA.
- Expands Starco's manufacturing in powdered foods, baking mixes, private label; includes Sticky Fingers and Marie Callender's brands.