Flowers Foods To Acquire Alpine Valley Bread Company
Flowers Foods, Inc. announces a definitive agreement to acquire Alpine Valley Bread Company, a family-owned producer of certified organic and all natural breads in the U.S., for $120 million in cash and stock. The acquisition, which is subject to regulatory approval and customary closing conditions, is expected to be completed in the fourth quarter.
Alpine Valley Bread Company was founded in 1997 by the Wood family with a vision to bake bread that was nutritious, organic, and flavorful, free from artificial ingredients. Their philosophy was simple: bread made with whole grains, salt, yeast, water, and honey. From its first bakery in a strip mall in Mesa, Ariz., Alpine Valley has grown to serve national retail grocers, specialty healthy living stores, and club retailers. Their product line includes Super Grains, 21 Whole Grains, Multi Grain Omega -3, Sprouted Wheat with Flaxseed and other breads that are USDA Organic certified, Non-GMO Project verified, and kosher certified.
The company employs 282 and operates two bakeries in Mesa. Once the transaction is complete, Alpine will operate as an independent subsidiary of Flowers.
With anticipated fiscal 2016 sales of approximately $85 million to $95 million, Alpine Valley has generated a compound average revenue growth rate of approximately 51 percent over the past three years. According to IRI data for the 52 weeks ending August 2, 2015, the organic bread market has grown at a rate of 27 percent over the past four years, significantly outperforming the broader $23 billion U.S. retail baked goods market.
Flowers plans to fund approximately 90 percent of the purchase price for the acquisition using its existing revolving credit facility and available cash and approximately 10 percent with Flowers Foods common stock. The company anticipates the transaction will be neutral to fiscal 2015 earnings.
Flowers Foods' financial advisor is Deutsche Bank, and Jones Day is the company's legal counsel. Alpine Valley Bread is represented by financial advisor IBG/Fox & Fin with Greenberg Traurig LLP as legal counsel.
Alpine Valley Bread Company was founded in 1997 by the Wood family with a vision to bake bread that was nutritious, organic, and flavorful, free from artificial ingredients. Their philosophy was simple: bread made with whole grains, salt, yeast, water, and honey. From its first bakery in a strip mall in Mesa, Ariz., Alpine Valley has grown to serve national retail grocers, specialty healthy living stores, and club retailers. Their product line includes Super Grains, 21 Whole Grains, Multi Grain Omega -3, Sprouted Wheat with Flaxseed and other breads that are USDA Organic certified, Non-GMO Project verified, and kosher certified.
The company employs 282 and operates two bakeries in Mesa. Once the transaction is complete, Alpine will operate as an independent subsidiary of Flowers.
With anticipated fiscal 2016 sales of approximately $85 million to $95 million, Alpine Valley has generated a compound average revenue growth rate of approximately 51 percent over the past three years. According to IRI data for the 52 weeks ending August 2, 2015, the organic bread market has grown at a rate of 27 percent over the past four years, significantly outperforming the broader $23 billion U.S. retail baked goods market.
Flowers plans to fund approximately 90 percent of the purchase price for the acquisition using its existing revolving credit facility and available cash and approximately 10 percent with Flowers Foods common stock. The company anticipates the transaction will be neutral to fiscal 2015 earnings.
Flowers Foods' financial advisor is Deutsche Bank, and Jones Day is the company's legal counsel. Alpine Valley Bread is represented by financial advisor IBG/Fox & Fin with Greenberg Traurig LLP as legal counsel.