Flowers Foods Acquires Sara Lee and Earthgrains Assets in Some Markets
Grows presence in packaged bakery foods
THOMASVILLE, Ga. -- Flowers Foods Inc. will acquire certain assets and trademark licenses from BBU Inc., a subsidiary of Grupo Bimbo S.A. B. de C.V., including in some areas the Sara Lee and Earthgrains brands for sliced breads, buns, and rolls.
The financial terms of the transactions were not disclosed.
Under the terms of the transactions, Flowers will receive perpetual, exclusive and royalty-free licenses to the Sara Lee and Earthgrains brands for sliced breads, buns, and rolls in the state of California, which together account for annual sales of approximately $134 million.
Flowers also will receive perpetual, exclusive and royalty-free license to the Earthgrains brand for a broad range of fresh bakery products in the Oklahoma City, Okla., market area. The transactions will be completed in phases. The Oklahoma City license will be completed shortly, and the first phase of the California transaction is expected to close in the first quarter of fiscal 2013.
"The acquisition strengthens our market presence in California, adding about 14.5 million people to the 70% of the U.S. population that currently has access to our fresh breads and rolls,” said George E. Deese, Flowers Foods' chairman and CEO. “This moves us closer to our goal of reaching 75% of the U.S. population through our direct-store-delivery system by 2016."
Based in Thomasville, Ga., Flowers Foods Inc. is the second-largest producer and marketer of packaged bakery foods for retail and foodservice customers in the United States with 2011 sales of $2.8 billion. Among the company's top brands are Nature's Own, Tastykake, and Mrs. Freshley's.