Flowers Foods Inc. (NYSE: FLO) has agreed to acquire family-owned natural bread producer Alpine Valley Bread Co. for $120 million in cash and stock.
Alpine, founded in 1997, makes organic bread under the Super Grains, 21 Whole Grains and Multi Grain Omega -3 brands. The target owns two bakeries in Mesa, Arizona and is predicting 2016 sales of up to $95 million. After the deal is completed, Alpine will remain an independent subsidiary of Flowers.
“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,” says Alpine CEO Todd Wood. Flowers will fund the purchase with 90 percent cash and debt and 10 percent common stock.
The Alpine acquisition comes after Thomasville, Georgia-based Flowers said it will buy Dave’s Killer Bread, another organic bread baker, for $275 million. For more on what is driving deals in the healthy food sector, read Snack Time.
Deutsche Bank AG (NYSE: DB) and Jones Day are advising Flowers. IBG/Fox & Gin and Greenberg Traurig LLP are Alpine’s advisers.