In a $120-million deal, Flowers Foods, Thomasville, Ga., announced another acquisition following its recent purchase of Dave's Killer Bread: a definitive agreement to acquire Alpine Valley Bread Co. On Sept. 9 , Flowers announced its deal to buy the family-owned producer of certified organic and all natural breads for $120 million in cash and stock. The acquisition, which is subject to regulatory approval and customary closing conditions, is expected to be finalized in the fourth quarter.
Alpine Valley Bread will function as an independent subsidiary of Flowers, says Flowers president and CEO Allen L. Shiver. The bread company was founded in 1997 by the Wood family with a vision to bake nutritious, organic, and flavorful, bread, free from artificial ingredients. Alpine Valley Bread employs 282 and operates two bakeries in Mesa, Ariz.
"Alpine Valley Bread Company will further strengthen our company," adds Shiver. "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, related enthusiasm about the support Flowers Foods will offer to expand the reach of products made in Alpine Valley Bread's Mesa bakeries. "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," he says. "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."
With anticipated fiscal 2016 sales of roughly $85 to $95 million, Alpine Valley has reportedly generated a compound average revenue growth rate of approximately 51 percent within the past three years. According to IRI data, the organic bread market has grown at a rate of 27 percent over the past four years, significantly outperforming the broader $23-billion U.S. retail baked goods market (according to IRI for the 52 weeks ending Aug. 2, 2015).