Flowers Foods, the US baker, is to buy Arizona-based Holsum Bakery in a cash-and-stock deal.

Financial details of the deal were undisclosed.

Holsum, which was established in 1881, claims to be Arizona's oldest family-owned business and has two bakeries in the Phoenix area.

Holsum employs 580 people and sells its products through independent distributors that serve retail and foodservice customers in Arizona, New Mexico, southern Nevada and Southern California with fresh breads and rolls under the Holsum, Aunt Hattie's, and Roman Meal brands.

George Deese, Flowers Foods chairman, CEO and president said: "We are fortunate to have this fine organisation merge with Flowers Foods. The Eisele family name is one of the oldest and most respected in the baking industry. Holsum and Flowers have similar operating strategies and business ethics. This merger of Holsum and Flowers further strengthens our operations and brings new talent to our company. We look forward to the growth opportunities the merger will provide as we strategically expand our geographic footprint and continue to build value for our shareholders."

Ed Eisele, president and majority owner of Holsum, added: "Our team is pleased to become part of Flowers Foods. Our companies have a shared commitment to the highest quality products, excellent customer service, and constant innovation and investments to keep our bakeries the best in our industry. It also is important to note that the culture within Flowers and Holsum is nearly identical and this will be a great fit for both organisations. We truly look forward to expanding into new geographies with an even broader product line than we have today."

Eisele will continue to lead the business when the merger is completed. Holsum will operate under its current name as a part of Flowers Foods.

"Under Ed's leadership, Holsum Bakery has achieved strong sales and earnings growth and we expect that growth trend to continue once the merger is accomplished," Deese said.