Flowers Foods to acquire producer of organic and all-natural breads
Flowers Foods Inc., Thomasville, GA, today announced a definitive agreement to acquire Alpine Valley Bread Co., a family-owned producer of certified organic and all-natural breads in Mesa, AZ, for $120 million in cash and stock. The acquisition, which is subject to regulatory approval and customary closing conditions, is expected to be completed in the 2015 fourth quarter.
Founded in 1997, Alpine Valley Bread Co. serves national retail grocers, specialty healthy living stores, and club retailers. Its product line includes Super Grains, 21 Whole Grains, Multi Grain Omega-3, Sprouted Wheat with Flaxseed and other breads that are certified USDA Organic, Non-GMO Project and kosher.
Alpine Valley Bread Co. employs 282 workers and operates two bakeries in Mesa. Once the transaction is complete, the company will operate as an independent subsidiary of Flowers Foods.
“Alpine Valley Bread Company will further strengthen our company,” says Allen L. Shiver, Flowers' president and CEO. “With its extensive portfolio of on-trend organic products, Alpine Valley has a deeply rooted culture of excellence, service, and commitment. We are especially pleased to welcome Alpine's team members who will bring expertise in the development, production, and delivery of organic breads to Flowers.”
With anticipated fiscal 2016 sales of approximately $85 million to $95 million, Alpine Valley has generated a compound average revenue growth rate of approximately 51 percent over the past three years, according to Flowers Foods.
Flowers plans to fund approximately 90 percent of the purchase price for the acquisition using its existing revolving credit facility and available cash, and approximately 10 percent with Flowers Foods common stock. The company anticipates the transaction will be neutral to fiscal 2015 earnings.