Flowers Foods to acquire Alpine Valley Bread Company for $120m

US-based bakery foods provider Flowers Foods has agreed to acquire Alpine Valley Bread Company, producer of certified organic and all natural breads, for $120m in cash and stock.

The transaction is subject to regulatory approval and customary closing conditions, and is expected to be closed in the fourth quarter of the year.

Flowers Foods president and CEO Allen L Shiver said: “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.”

The product line Alpine Valley includes super grains, 21 whole grains, multi grain omega-3, sprouted wheat with flaxseed, and other breads.

Established in 1997, Alpine Valley currently employs 282 people, and operates two bakeries in Mesa, Arizona.

According to Flowers Foods, Alpine will operate as an independent subsidiary of Flowers after the completion of transaction.

Alpine Valley Bread Company CEO Todd Wood said: “Flowers Foods brings resources we need and we are pleased with Flowers’ commitment to keep our brands and our bakeries true to what has made our growth possible, making bread with a carefully developed process with pure and simple ingredients.”

Flowers Foods is expected to fund 90% of the purchase price using its existing revolving credit facility and available cash, and around 10% with its common stock.