Packaged bakery foods company Flowers Foods has announced the acquisition of substantially all the assets of Royal Cake Company Inc, a Winston-Salem, North Carolina-based bakery, for $10m.

Flowers assumed no liabilities of Royal other than those associated with assumed contracts. The acquisition was approved by the United States Bankruptcy Court for the Middle District of North Carolina, Winston-Salem Division, on 18 August  2005.

The bakery will operate as a wholly owned subsidiary of Flowers Foods Specialty Group under the name Flowers Bakery of Winston-Salem, LLC. Sam Burnette, Royal Cake president, will continue as president of the new Flowers subsidiary.

"Demand for our snack cakes continues to grow and Royal gives us the additional production capacity to take advantage of that demand," said George E Deese, Flowers Foods' president and chief executive officer. "We're pleased to have the Royal team join our company."

Royal Cake, with 2004 sales of $24m, filed for bankruptcy in February 2005. The company employs approximately 190 people and produces cookies, cereal bars and creme-filled cakes that are sold under the Royal, Bakers Best, and private label brands.