Flowers Foods Inc.  (NYSE: FLO) is buying bread baking company Dave’s Killer Bread from the founding Dahl Family and Goode Partners LLC for $275 million in cash.

Milwaukie, Oregon-based Dave’s, founded in 1955, is known for making 17 varieties of whole-grain and organic bread. The target is anticipating 2016 sales of up to $170 million. Dave’s will remain an independent of subsidiary of Flowers after the acquisition closes by year’s end. Thomasville, Georgia-based Flowers is funding the acquisition with cash on hand and debt. New York-based Goode Partners acquired a 50 percent stake in Dave’s in January 2013.

"This is a well-positioned, fast growing company with excellent brand equity and an on-trend organic portfolio that appeals to today's consumers,” says Flowers’ CEO Allen Shiver.

Healthy food companies continue to attract buyer interest as they try to meet consumer demand for healthier food options. For instance, WhiteWave Foods Co. (NYSE: WWAV) is buying privately-held yogurt maker Wallaby Yogurt Company Inc. in a $125 million cash deal and closed the $550 million acquisition of protein powder maker Sequel Naturals Ltd. from VMG Partners, on August 1.

For more on M&A trends in the healthy food space read Snack Time.

Deutsche Bank AG (USA) (NYSE: DB) and Jones Day LLP are advising Flowers. Davis Wright Tremaine LLP is representing Dave’s.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.