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Panos Brands, a Rochelle Park-based consumer packaged goods company, is adding popular organic salad dressing and condiment brand Tessemae’s to its portfolio of better-for-you options.

Valued at $4.5 million, the transaction comes about a year after the Baltimore-headquartered brand filed for Chapter 11 bankruptcy protection. The acquisition was approved Jan. 18 by the U.S. Bankruptcy Court in Maryland.

Founded 15 years ago by three Annapolis brothers, Tessemae’s is based on their mother’s all-natural salad dressing recipe. The brand debuted in a single Whole Foods Market store and quickly expanded to national grocers, retailers and hotel chains.

However, demand outpaced supply. The company reportedly began facing worker shortages as well as cost increases for raw materials during the pandemic. By 2021, the struggles led to layoffs, product price hikes and cuts to promotional spending.

Following its Chapter 11 filing last year, Tessemae’s took steps to stabilize the business and increase orders. Ultimately, it decided that selling assets would be the best strategy to preserve the brand.

Panos was founded in 2007 and acquired nine years later by private equity firm Hammond, Kennedy, Whitney & Co. Inc. It manages a collection of brands including Andrew & Everett Cheese, KA-ME Asian food products, Walden Farms calorie-free foods, Better Than Milk plant-based drinks and Amore Italian cooking pastes.

Commenting on the acquisition, Panos CEO Darcy Zbinovec said, “Tessemae’s offers a range of great tasting, organic salad dressings that consumers love. The products align with consumer interest in clean labels and will be a great complement to our Walden Farms line of better-for-you salad dressings.”

“We’re excited to partner with retailers to expand availability of Tessemae’s across markets to service the strong consumer interest in the refrigerated and shelf stable dressings,” she said.