Flowers Foods To Acquire Sara Lee And Earthgrains Assets In California And
Earthgrains Assets In Oklahoma City
THOMASVILLE, Ga., Oct. 26, 2012
THOMASVILLE, Ga., Oct. 26, 2012 /PRNewswire/ --Flowers Foods, Inc. (NYSE:
FLO) today announced that the United States Department of Justice has approved
an agreement under which Flowers will acquire certain assets and trademark
licenses from BBU, Inc., a subsidiary of Grupo Bimbo S.A. B. de C.V. The
financial terms of the transactions were not disclosed.
(Logo: http://photos.prnewswire.com/prnh/20080530/CLF007LOGO )
Under the terms of the transactions, Flowers will receive perpetual,
exclusive, and royalty-free licenses to the Sara Lee and Earthgrains brands
for sliced breads, buns, and rolls in the state of California, which together
account for annual sales of approximately $134 million. Flowers also will
receive perpetual, exclusive, and royalty-free license to the Earthgrains
brand for a broad range of fresh bakery products in the Oklahoma City, Okla.,
market area. The transactions will be completed in phases. The Oklahoma City
license will be completed shortly, and the first phase of the California
transaction is expected to close in the first quarter of fiscal 2013.
Commenting on the announcement, George E. Deese, Flowers Foods' chairman and
CEO, said, "The acquisition strengthens our market presence in California,
adding about14.5 million people to the 70% of the U.S. population that
currently has access to our fresh breads and rolls. This moves us closer to
our goal of reaching 75% of the U.S. population through our
direct-store-delivery system by 2016."
Flowers Foods has proven experience integrating acquisitions. The company has
completed more than 100 acquisitions since listing publicly in 1968, including
13 in the past decade. Most recently, Flowers acquired Tasty Baking Company in
2011 and Lepage Bakeries, Inc. in 2012. Management will discuss the
acquisition of the Sara Lee assets on its quarterly earnings conference call,
which is scheduled for November 8, 2012.
Headquartered in Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is the
second-largest producer and marketer of packaged bakery foods for retail and
foodservice customers in the United States with 2011 sales of $2.8 billion.
Flowers operates 44 bakeries that produce a wide range of bakery products.
These products are sold through a direct-store-delivery network with access to
approximately 70% of the U.S. population in the East, South, and Southwest as
well as in certain markets in California. Select Flowers products are sold
nationwide through customers' delivery systems. Among the company's top brands
are Nature's Own, Tastykake, and Mrs. Freshley's. 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
SOURCE Flowers Foods, Inc.
Contact: Investor Contact: Marta J. Turner, +1-229-227-2348; or Media Contact:
Keith Hancock, +1-229-227-2380
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