Bakery goods giant Flowers Foods, Thomasville, Ga., is purchasing organic bread maker Dave's Killer Bread for about $275 million in cash. Announced on August 12, the cash deal is expected to be finalized in the third quarter of 2015. Having a famous former felon as its namesake and co-founder, Dave Dahl, Dave's Killer Bread will operate as an independent subsidiary.
Flowers Foods president and CEO Allen Shiver said in a statement that Flowers was excited to buy the iconic bread maker, and that Dave's organic products appeal to today's consumers. Shiver said he sees opportunities to increase distribution of its bread products via Flowers' direct-store-delivery and warehouse network.
The deal would also help expand Flowers' reach into the Pacific Northwest and Canada.
Originally known as Nature Bake, Dave's family founded the company in 1955 and in 2005, the company changed its name to that of its top-selling bread variety. The bakery now provides 17 varieties of organic bakery products across the U.S. and Canada. Dave's has 300 employees and runs one bakery in Milwaukie, Oregon.