Flowers Foods Inc. (NYSE: FLO) will acquire licenses to the Sara Lee and Earthgrains brands for an undisclosed amount.
The licenses, for sliced breads, buns and rolls, are for the state of California. Flowers also received the license to the Earthgrains brand in Oklahoma City. The licenses account for about $134 million in annual sales.
Flowers, headquartered in Thomasville, Ga., produces and markets packaged bakery foods, including the brands Nature’s Own, Tastykake and Mrs. Freshley’s. It will acquire the licenses from BBU Inc., a subsidiary of Grupo Bimbo S.A. B. de C.V.
Sara Lee Corp. spun off its coffee and tea business and took the Hillshire Brands (NYSE: HSH) name earlier in 2012. Hillshire sells primarily meat products.
The Hillshire Farm, Jimmy Dean and Sara Lee Desserts products are under the Hillshire Brands umbrella. Earthgrains makes Earthgrains-brand bread.