Flowers Foods acquires Sara Lee, Earthgrains assets in California

US-based bakery foods company Flowers Foods has completed the acquisition of perpetual, exclusive and royalty-free licences to the Sara Lee and Earthgrains brands for sliced breads, buns and rolls in California from BBU, a subsidiary of Mexico-based Grupo Bimbo.

The financial terms of the transaction have not been disclosed.

On 26 October 2012, Flowers Foods announced that the US Department of Justice had approved the agreement, as well as a separate one for the acquisition of the licence to the Earthgrains brand for fresh bakery products in Oklahoma City, Oklahoma, which was completed in 2012.

Together with the California agreement, the brands generate approximately $134m in annual sales.

The company noted that the latest acquisition will fortify its market presence in California, adding about 14.5 million people to the 70% of US citizens that presently have access to the company’s breads and rolls brands.

Flowers Foods chairman of the board and CEO George E. Deese said that the company 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," Deese said.

Flowers Foods, headquartered in Georgia, US, operates 44 facilities that produce a broad range of bakery products under brands such as Nature’s Own, Tastykake, and Mrs. Freshley’s.

The company reported annual sales of $3.05bn in 2012.

---

Image: The acquisition will fortify Flower Foods’ market presence in California, adding nearly 14.5 million people to its potential customer base. Photo courtesy of PRNewsFoto/Flowers Foods.