Big baked goods provider Flowers Foods announced a definitive agreement to acquire Canyon Bakehouse, this week. Flowers Foods will snap up the Colorodo-based gluten-free baking company in a transaction valued at roughly $205 million.
"Canyon Bakehouse is an innovative leader in a growing segment of the bakery category, which closely aligns this acquisition with our strategic goals," said Allen Shiver, Flowers Foods’ President and CEO, in a press release. "They have great products, a talented team of employees, a state-of-the-art gluten-free bakery, and a brand with an enthusiastic fan following. We see opportunities to leverage Flowers Foods' distribution network and retail partnerships to drive growth by bringing Canyon Bakehouse products to more consumers across the country. We look forward to welcoming Josh, Christi, and the rest of Canyon Bakehouse's employees to the Flowers team."
Canyon Bakehouse offers a line of 21 gluten-free breads, buns, bagels, English muffins, and specialty items. Nearly 90 percent of the company’s sales are distributed frozen through natural, specialty, grocery, and mass retailers around the country.
"Since the beginning, the mission of Canyon Bakehouse has been to help those who have given up gluten to Love Bread Again®,” said Canyon Bakehouse CEO and Founder Josh Skow. “We are tremendously pleased with the brand, the products, and the teams that we have developed and grown over the past nine years, and we are thankful for the many partners who have helped us along the way. We are now very excited about the opportunities for our company alongside Flowers Foods. With Flowers' national reach, we will be able to bring our gluten-free products to many more consumers. Flowers shares our passion for baking and they understand what makes our company and our products unique. We look forward to joining the Flowers Foods family."
Canyon Bakehouse has anticipated sales of approximately $70 million to $80 million in 2019.
The $205 million deal includes a performance-based contingent payment of $5 million and involves $175 million net of future tax benefits of approximately $30 million on a net present value basis.
The acquisition is expected to be completed in Flowers Foods’ Q4 2018.
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