Barilla Acquires Goodles for $750 Million

Italian pasta maker Barilla paid $750 million in cash for Goodles, a company producing a healthier version of macaroni and cheese, according to a source familiar with the negotiations.

The deal with family-owned Barilla was announced in early September and closed this week. The amount is 28 times the funds raised by Goodles in financing rounds. According to the source, the deal made dozens of Goodles employees millionaires. Barilla also agreed to a nine-figure payout upon achieving target metrics; financial terms were previously undisclosed. In the 12 months leading up to the closing, Goodles' net sales were $190 million.

Barilla stated that it is pleased with the acquisition's closure and declined to comment on financial details. "Goodles will continue to operate as an independent brand under its current leadership, and we look forward to supporting its next growth phase while maintaining the creativity, innovation, and consumer connection that have brought it success," the company said in a statement.

Jen Zesut, co-founder of Goodles in October 2020, will continue to lead the company from Santa Cruz, California, and plans to retain all employees. Neon boxes, increased protein content, and flavors like Gouda and Hatch chile have helped the company capture market share from Kraft Heinz despite a higher price.

Zesut said she met Barilla executives late last year at a Formula 1 race in Las Vegas, but the deal was not discussed then. Barilla approached Goodles in the summer. "It was a complete surprise to me," she said.

Genevieve Gilbreath from Springdale Ventures, which invested $750,000 in Goodles at an early stage and the same amount later, believes the company still has room for growth in the U.S. "It was a category truly ripe for change," she said.

According to a BNP Paribas analysis in June, in categories such as frozen meals, yogurts, and nut butters, less processed products sell better than more processed ones by an average of about 7 percentage points.