Flowers Foods is starting off 2023 strong. Within the first quarter of the year, the supplier is already planning to complete an impressive acquisition. It was recently announced that Flowers has entered a definitive agreement to acquire Papa Pita Bakery, known for its bagels, tortillas, breads, buns, English muffins, and flatbreads.
"Papa Pita began as a family business and is an inspiring example of the American dream. Its leaders have grown the company strategically through product and category expansions," said Ryals McMullian, President and Chief Executive Officer, Flowers Foods. "Additionally, its focus on exceptional product quality and operational excellence aligns strongly with the Flowers culture. Papa Pita has been an important co-manufacturer of Flowers products for many years, and I'm thrilled about the opportunity to realize manufacturing and distribution synergies, in addition to expanding our geographic reach and welcoming the passionate Papa Pita team to Flowers."
Papa Pita operates a 270,000-square-foot facility in West Jordan, Utah. Its primary brands include Papa Pita, Great Grains, Bubba's Bagels, and Maya's Tortillas. The company also has a significant co-manufacturing business as well as direct-store-distribution in the Western United States.
Papa Pita will continue to operate out of its Utah facility, increasing Flowers' presence in the Western U.S. According to a press release, Flowers plans to fund the transaction with cash on-hand and existing credit facilities.
"Our success has been a direct result of the dedication of our hard-working team members, their ability to think big about what's possible, and a constant focus on how we can grow," said Farzad Mohebbi, President and CEO, Papa Pita. "Flowers shares these same traits, making our partnership a great fit."
Deutsche Bank acted as exclusive financial advisor and Jones Day acted as legal counsel to Flowers Foods in this transaction. BofA Securities served as the exclusive financial advisor and Kirton McConkie was legal counsel to Papa Pita in this transaction. The acquisition is subject to regulatory approval and customary closing conditions.
Cheers to what looks to be a strong first quarter!