Flowers Foods has announced it will acquire Alpine Valley Bread Company, a certified organic and all natural bread producer, for $120 million in cash and stock.
"Alpine Valley Bread Company will further strengthen our company," said Allen L. Shiver, Flowers' President and Chief Executive Officer. "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."
Alpine Valley Bread Company was founded in 1997 by the Wood family with what the company describes as a vision to bake bread that is nutritious, organic, flavorful, and free from artificial ingredients. Alpine Valley currently serves national retail grocers, specialty healthy living stores, and club retailers. With a product line that includes Super Grains, 21 Whole Grains, Multi Grain Omega -3, Sprouted Wheat with Flaxseed and more, all of the company’s offerings are USDA Organic certified, Non-GMO Project verified, and kosher certified. The company employs 282 and operates two bakeries in Mesa. Once the transaction is complete, Alpine will operate as an independent subsidiary of Flowers, according to a press release.
"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,” said Todd Wood, Alpine Valley Bread Company's Chief Executive Officer. “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 approximately $85 million to $95 million, Alpine Valley has generated a compound average revenue growth rate of approximately 51% over the past three years. The organic bread market continues to grow as well, with data from the press release showing growth at a rate of 27% over the past four years.
Flowers Foods plans to fund approximately 90% of the purchase price for the acquisition using its existing revolving credit facility and available cash, and approximately 10% with Flowers Foods common stock. The acquisition, which is still subject to regulatory approval and customary closing conditions, is expected to be completed in the fourth quarter.