Flowers Foods acquires Sara Lee, Earthgrains assets in California
Flowers Foods Inc., Thomasville, Ga. has acquired the perpetual, exclusive and royalty-free licenses to the Sara Lee and Earthgrains brands for sliced breads, buns and rolls in California from BBU Inc., a subsidiary of Grupo Bimbo S.A.B. de C.V. Financial terms of the transaction was not disclosed.
On Oct. 26, 2012, Flowers announced that the U.S. Department of Justice had approved this agreement, along with a separate one for the acquisition of the perpetual, exclusive and royalty-free license to the Earthgrains brand for fresh bakery products in the Oklahoma City, Okla., market area. The Oklahoma transaction was completed in 2012. Together with the California agreement, the brands generate approximately $134 million in annual sales.
“Our team has been working to ensure a smooth transition of these brands in California,” says George E. Deese, Flowers Foods’ chairman of the board and CEO. “Now that the transaction has closed, the rollout of Sara Lee and Earthgrains products on our distribution routes will begin immediately in Southern California and continue northward in phases over the coming months.”
Source: PR Newswire