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.

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“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.

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