Flowers Foods secures Grupo Bimbo bakery acquisitions31 October 2012
Flowers Foods has bought certain assets and trademarks licences relating to the Sara Lee and Earthgrains brands from Grupo Bimbo.
Thomasville, Georgia-based Flowers has taken perpetual, exclusive and royalty-free licences for Sara Lee in California and for Earthgrains fresh bakery products in Oklahoma.
The Earthgrains deal will be completed in the next few weeks while the Sara Lee acquisition in California is expected to close in the first quarter of the fiscal 2013.
The brands generate combined annual sales of around $134 million in Oklahoma and California. Financial details of the acquisitions were undisclosed.
"The acquisition strengthens our market presence in California, adding about 14.5 million people to the 70% of the US population that currently has access to our fresh breads and rolls,” said George E Deese, Flowers Foods' chairman and chief executive.
“This moves us closer to our goal of reaching 75% of the US population through our direct-store-delivery system by 2016."
Flowers has an annual turnover of approximately $2.8 billion and counts Tastykake and Nature’s Own among its brands.
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