This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Flowers Foods Announces Agreement To Acquire Lepage Bakeries, Inc.

THOMASVILLE, Ga., May 31, 2012 /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) today announced it has entered into a definitive agreement to acquire Lepage Bakeries, Inc., of Auburn, Maine for $370 million in cash and stock. Flowers expects to complete the transaction in its fiscal second quarter, pending necessary regulatory approvals.

In summary, the transaction:
  • Adds a best-in-class baking company with over $166 million in net sales to Flowers;
  • Complements Flowers' existing portfolio of strong brands by adding leading regional brands -- Country Kitchen and Barowsky's -- and a broader variety of breads, buns, and rolls to Flowers;
  • Is expected to add $0.03 to $0.05 to Flowers' earnings per share in FY2012, excluding acquisition costs and $0.08 to $0.12 to earnings per share in FY2013;
  • Expands Flowers' presence in New England and New York, making the company's fresh bakery products available to an additional 18 million people;  
  • Adds three highly efficient bakeries, two in Lewiston, Maine, and one in Brattleboro, Vt., with available production capacity for Flowers' expansion in mid-Atlantic and Northeast markets;
  • Provides a DSD (direct-store-delivery) platform to accelerate penetration of Nature's Own and Tastykake brands in the Northeast;
  • Brings Flowers an experienced team focused on quality and innovation; current Lepage leaders Andrew Barowsky and Albert Lepage will continue at the helm of Lepage Bakeries as co-chairmen; Barowsky also will serve as vice chairman of innovation for Flowers Foods.

Lepage Bakeries is a best-in-class independent baking company with efficient operations, high-quality products, strong regional brands, and a solid distribution system serving retail and foodservice customers throughout the Northeast.

George E. Deese, Flowers Foods' chairman and chief executive officer, said, "The Lepage name is one of the oldest and most respected in the baking industry and we are fortunate to combine this fine organization with Flowers Foods. Lepage has operating strategies similar to Flowers' and the Lepage team is known for its innovation and quality. We believe the addition of Lepage supports our strategy as it will bring efficient bakeries with available production capacity, access to markets in the Northeast, new products and brands, and more than 550 experienced team members to our company. Once completed, the acquisition will increase our DSD access from 64% to 70% of the U.S. population, moving us closer to our goal of at least 75% by 2016. We look forward to the anticipated growth opportunities this acquisition is expected to provide as we continue to expand the geographic footprint of our Nature's Own and Tastykake brands."

Commenting on behalf of Lepage Bakeries, Andy Barowsky, president and chief executive officer, and Albert Lepage, chairman of the board, said, "Our team is pleased to become part of Flowers Foods. Our companies have a shared commitment to the highest quality products, excellent customer service, ongoing innovation, and capital investments to keep our bakeries the best in the industry as well as a similar culture. We look forward to continuing to innovate with new products and improved processes when we join the Flowers team."

Lepage Bakeries will operate under its current name as a part of Flowers Foods' DSD segment and Barowsky and Lepage will serve as co-chairmen of the board of Lepage Bakeries. In addition, Barowsky will serve as vice chairman of innovation for Flowers Foods. "Lepage Bakeries has achieved strong sales and earnings growth under the leadership of the Barowsky/Lepage team, and we expect that growth trend to continue once the transaction is accomplished," Deese said.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.41 0.44%
FB $101.87 2.30%
GOOG $690.66 1.90%
TSLA $149.84 1.10%
YHOO $27.49 2.50%


Chart of I:DJI
DOW 16,090.46 +76.08 0.48%
S&P 500 1,871.88 +19.67 1.06%
NASDAQ 4,339.5140 +70.7510 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs