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Flowers Foods to Acquire Alpine Valley Bread Company

Lindsey Wojcik

January 1, 2018

2 Min Read
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Flowers Foods, Inc. has entered a definitive agreement to acquire Alpine Valley Bread Company, a family-owned producer of certified organic and all natural breads in the U.S., for $120 million in cash and stock. The acquisition, which is subject to regulatory approval and customary closing conditions, is expected to be completed in the fourth quarter. Alpine Valley Bread Company was founded in 1997 by the Wood family with a vision to bake bread that was nutritious, organic and free from artificial ingredients. The company's philosophy was simple: great bread made with whole grains, salt, yeast, water and honey. From its first bakery in a strip mall in Mesa, Ariz., Alpine Valley has grown to serve national retail grocers, specialty healthy living stores and club retailers. The product line includes Super Grains, 21 Whole Grains, Multi Grain Omega-3, Sprouted Wheat with Flaxseed and other breads that are USDA Organic certified, Non-GMO Project verified and kosher certified. The company employs 282 and operates two bakeries in Mesa. Once the transaction is complete, Alpine will operate as an independent subsidiary of Flowers. "Alpine Valley Bread Company will further strengthen our company," says Allen L. Shiver, Flowers' president and chief executive officer. "With its extensive portfolio of on-trend organic products, Alpine Valley has a deeply rooted culture of excellence, service, and commitment. We are especially pleased to welcome Alpine's team members who will bring expertise in the development, production, and delivery of organic breads to Flowers." Todd Wood, Alpine Valley Bread Company's chief executive officer, adds: "Flowers Foods brings resources we need and we are pleased with Flowers' commitment to keep our brands and our bakeries true to what has made our growth possible—making bread with a carefully developed process with pure and simple ingredients. In short, our commitment to deliver products positioned to meet consumers' needs for healthier, more nutritious baked foods will be stronger than ever when we join Flowers Foods." Flowers plans to fund approximately 90 percent of the purchase price for the acquisition using its existing revolving credit facility and available cash and approximately 10 percent with Flowers Foods common stock. The company anticipates the transaction will be neutral to fiscal 2015 earnings. Flowers Foods' financial advisor is Deutsche Bank, and Jones Day is the company's legal counsel. Alpine Valley Bread is represented by financial advisor IBG/Fox & Fin with Greenberg Traurig LLP as legal counsel.

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