Flowers Foods To Acquire Organic Bread Company for $275M
Flowers Foods, Inc. announces it will acquire organic bread company Dave's Killer Bread for $275 million in cash. The acquisition is expected to be completed in the third quarter of 2015.
Flowers Foods will aquire the brand from its existing shareholders, including members of the Dahl family and Goode Partners. Founded as Nature Bake in 1955 by the Dahl family, the company assumed the name of its best-selling variety, Dave's Killer Bread, after it launched in 2005. Dave's Killer Bread has grown to offer 17 varieties of whole-grain organic bakery products distributed across Canada and the U.S., and is now the largest organic bread company in North America. Its products have no artificial ingredients and are certified USDA organic, Non-GMO Project verified and rich with protein, fiber and whole grains, seeded all the way around and through.
Dave's Killer Bread employs 300 and operates one bakery in Milwaukie, Ore. Once the transaction is complete, it will be an independent subsidiary and is expected to continue expansion of its Oregon operations.
In addition to a new category, new brand, new products, and new customers, the acquisition will expand Flowers' geographic reach into the Pacific Northwest and Canada.
With anticipated fiscal 2016 sales of $160 million to $170 million, Dave's Killer Bread generated a revenue compound average growth rate of 32 percent over the past three years, driven by a dedicated and loyal customer base, geographic and channel growth and great tasting products.
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 retail baked goods market. IRI data also illustrates Dave's Killer Bread's successful track record of growth, showing the brand increased retail sales by 25 percent in the past year, and by 168 percent versus three years prior.
Flowers plans to fund the acquisition using its existing revolving credit facility and available cash. The company anticipates the transaction will be neutral to fiscal 2015 earnings.
Deutsche Bank acts as financial advisor to Flowers Foods on the transaction. Jones Day LLP is Flowers Foods' legal counsel. Dave's Killer Bread is represented by Davis Wright Tremaine LLP.
Flowers Foods will aquire the brand from its existing shareholders, including members of the Dahl family and Goode Partners. Founded as Nature Bake in 1955 by the Dahl family, the company assumed the name of its best-selling variety, Dave's Killer Bread, after it launched in 2005. Dave's Killer Bread has grown to offer 17 varieties of whole-grain organic bakery products distributed across Canada and the U.S., and is now the largest organic bread company in North America. Its products have no artificial ingredients and are certified USDA organic, Non-GMO Project verified and rich with protein, fiber and whole grains, seeded all the way around and through.
Dave's Killer Bread employs 300 and operates one bakery in Milwaukie, Ore. Once the transaction is complete, it will be an independent subsidiary and is expected to continue expansion of its Oregon operations.
In addition to a new category, new brand, new products, and new customers, the acquisition will expand Flowers' geographic reach into the Pacific Northwest and Canada.
With anticipated fiscal 2016 sales of $160 million to $170 million, Dave's Killer Bread generated a revenue compound average growth rate of 32 percent over the past three years, driven by a dedicated and loyal customer base, geographic and channel growth and great tasting products.
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 retail baked goods market. IRI data also illustrates Dave's Killer Bread's successful track record of growth, showing the brand increased retail sales by 25 percent in the past year, and by 168 percent versus three years prior.
Flowers plans to fund the acquisition using its existing revolving credit facility and available cash. The company anticipates the transaction will be neutral to fiscal 2015 earnings.
Deutsche Bank acts as financial advisor to Flowers Foods on the transaction. Jones Day LLP is Flowers Foods' legal counsel. Dave's Killer Bread is represented by Davis Wright Tremaine LLP.