US: Flowers acquires Sara Lee, Earthgrains assets in California
By Katy Askew | 29 October 2012
 |
Flowers expands in California |
Flowers Foods has acquired the licence to the Earthgrains and Sara Lee brands in California from Grupo Bimbo.
The US bread maker has predicted consolidation in the US bakery sector and is looking to build its geographic reach by capitalising on M&A opportunities.
"The acquisition strengthens our market presence in California, adding about 14.5m people to the 70% of the US population that currently has access to our fresh breads and rolls. This moves us closer to our goal of reaching 75% of the US population through our direct-store-delivery system by 2016," Flowers chairman and CEO George Deese said.
Flowers will now produce Sara Lee and Earthgrains sliced bread, buns and rolls in California. The group will also produce Earthgrains-brand fresh bakery products for distribution in Oklahoma City.
The transaction has already received USDA approval. Financial details were not revealed.
Flowers Foods To Acquire Sara Lee And Earthgrains Assets In California And Earthgrains Assets In Oklahoma City
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 about 14.5 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.
Original source: Flowers Foods
Sectors: Bakery, Mergers & acquisitions
Companies: Sara Lee, Flowers Foods, Grupo Bimbo
View next/previous articles
29 Oct 2012 -
Currently reading -
US: Flowers acquires Sara Lee, Earthgrains assets in California
29 Oct 2012 -
29 Oct 2012 -
Related research
Sara Lee Corporation - SWOT, Strategy and Corporate Finance Report
Sara Lee Corporation - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, an...
Sara Lee Corporation - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report
Datamonitor's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage....
Sara Lee Corporation: Consumer Packaged Goods Company Profile, SWOT & Financial Report
Canadean's "Sara Lee Corporation: Consumer Packaged Goods Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, business description, competitiv...
Related articles
US: Hillshire adds to Sara Lee dessert stable
US food group Hillshire Brands has added to its Sara Lee dessert line with the launch of two products.
US: Former Sara Lee chief Smits appointed Cargill CFO
US agribusiness giant Cargill has appointed former Sara Lee chief executive, Marcel Smits, as its CFO.
US: Flowers Foods sales climb, "well-positioned" for growth
US baker Flowers Foods said its sales are up year-to-date and that the company is "well-positioned" for accelerated growth in 2013.
There are currently no comments on this article
Be the first to comment on this article