THOMASVILLE, GA. — Flowers Foods has entered into an agreement to acquire Alpine Valley Bread, Mesa, Ariz., for approximately $120 million. Alpine Valley is a baker of bread that is natural, organic and Non-GMO Project verified. The company operates two bakeries in Mesa and employs 282.
|Allen L. Shiver, president and c.e.o. of Flowers Foods.|
“Alpine Valley Bread Co. will further strengthen our company,” said Allen L. Shiver, president and chief executive officer of Flowers Foods. “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.”
Alpine Valley Bread was founded in 1995 with the opening of a bakery in a strip mall in Mesa. By 1996, the company’s bread products were being sold in grocery stores. As demand increased Swiss Oven Bakery joined the Alpine Valley Bread group in 2003.
Alpine Valley is expected to generate $85 million to $95 million in sales during fiscal 2016. Flowers Foods plans to fund approximately 90% of the purchase price for the acquisition using its existing revolving credit facility and available cash and approximately 10% with Flowers Foods common stock. The company anticipates the transaction will be neutral to fiscal 2015 earnings.
This is the second acquisition Flowers Foods has made during the past 30 days. In August, the company entered into an agreement to acquire Dave’s Killer Bread for approximately $275 million in cash. Dave’s Killer Bread is considered to be the largest organic bread company in the United States.