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Feb. 25, 2013 /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) today announced the completion of its acquisition of the perpetual, exclusive, and royalty-free licenses to the
Sara Lee and
Earthgrains brands for sliced breads, buns, and rolls in the state of
California from BBU, Inc., a subsidiary of Grupo Bimbo S.A.B. de C.V. Financial terms of the transaction was not disclosed.
October 26, 2012, Flowers announced that the United States Department of Justice had approved this agreement, along with a separate one for the acquisition of the perpetual, exclusive, and royalty-free license to the
Earthgrains brand for fresh bakery products in the
Oklahoma City, Okla., market area. The
Oklahoma transaction was completed in 2012. Together with the
California agreement, the brands generate approximately
$134 million in annual sales.
"Our team has been working to ensure a smooth transition of these brands in
California. Now that the transaction has closed, the rollout of
Sara Lee and
Earthgrains products on our distribution routes will begin immediately in
Southern California and continue northward in phases over the coming months," said
George E. Deese, Flowers Foods' chairman of the board and CEO.
This acquisition strengthens Flowers Foods' market presence in
California, adding about 14.5 million people to the 70% of the U.S. population that currently has access to its fresh breads and rolls.
Company Information Headquartered in
Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest producers of packaged bakery foods for retail and foodservice customers in
the United States with 2012 sales of
$3.05 billion. Flowers operates 44 bakeries that produce a wide range of bakery products. Among the company's top brands are
Nature's Own and
Tastykake. For more information, visit
Statements contained in this press release that are not historical facts are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Other factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company's prospects in general include, but are not limited to, (a) competitive conditions in the baked foods industry, including promotional and price competition, (b) changes in consumer demand for our products, (c) the success of productivity improvements and new product introductions, (d) a significant reduction in business with any of our major customers including a reduction from adverse developments in any of our customer's business, (e) fluctuations in commodity pricing, (f) our ability to fully integrate recent acquisitions into our business, and (g) our ability to achieve cash flow from capital expenditures and acquisitions and the availability of new acquisitions that build shareholder value. In addition, our results may also be affected by general factors such as economic and business conditions (including the baked foods markets), interest and inflation rates and such other factors as are described in the company's filings with the Securities and Exchange Commission.