Flowers Foods Inc., Thomasville, GA, has reached a definitive agreement with Dave’s Killer Bread to purchase the Milwaukie, OR, bakery for approximately $275 million in cash. The acquisition, which is subject to regulatory approval and customary closing conditions, is expected to be completed in the third quarter of 2015.

Founded as Nature Bake in 1955 by the Dahl family, the company assumed the name of its best-selling variety, Dave's Killer Bread, after it was an instant hit at the Portland Farmer's Market, where it launched in 2005. Dave's Killer Bread offers 17 varieties of whole-grain organic bakery products distributed across Canada and the U.S., and is now the largest organic bread company in North America, according to Flowers Foods.

Dave's Killer Bread employs 300 and operates one bakery in Milwaukie. Once the transaction is complete, it will be an independent subsidiary of Flowers Foods and is expected to continue expanding its Oregon operations.

"We are very excited about the pending acquisition of Dave's Killer Bread," says Allen L. Shiver, Flowers' president and CEO. "This is a well-positioned, fast-growing company with excellent brand equity and an on-trend organic portfolio that appeals to today's consumers. The Dahl family and Goode Partners have built a great brand with a commitment to quality and community, two attributes that Flowers values tremendously. We are especially pleased to welcome the Dave's Killer Bread team members who will bring expertise and experience to our company."

Shiver notes that in addition to a new category, new brand, new products and new customers, the acquisition will expand Flowers’ geographic reach into the Pacific Northwest and Canada. “The Dave’s Killer Bread team bakes bread that is truly unique,” he says. “We see strong growth potential across our direct-store-delivery and warehouse businesses as we leverage our strengths to offer Dave’s Killer Bread products to Flowers’ existing customers nationwide.”

Flowers plans to fund the acquisition using its existing revolving credit facility and available cash. The company anticipates the transaction will be neutral to fiscal 2015 earnings.