US baker Flowers Foods has bought back a bakery building in Georgia from The Schwan Food Co.
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Flowers, one of the US’s leading bakers, built the bakery in 1999 and then sold the property to Schwan in 2003.
Since then, Flowers has operated the bakery under the terms of a building lease with Schwan. Following the close of the transaction, Flowers will continue to produce hearth-baked buns, rolls and bagels in the Suwanee-based facility for retail and foodservice customers.
In a separate transaction, Schwan has sold an adjacent freezer facility to an REIT affiliate of investment firm WP Carey & Co. Flowers has entered into a 15-year lease agreement with WP Carey for a portion of the available pallet positions in the freezer.
“When we sold the Suwanee facility to Schwan, our plan was to operate the bakery as long as possible and then move the equipment to another facility,” said George Deese, chairman, CEO and president of Flowers Foods.
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By GlobalData“Reacquiring the building allows us to keep production running without interruption, provides us with operational certainty regarding future production, and creates opportunities for expansion of the existing bakery to accommodate additional volume.”
