Flowers Foods, Inc. today announced the completion of its acquisition of the perpetual, exclusive, and royalty-free licenses to the Sara Lee and Earthgrains brands for sliced breads, buns, and rolls in the state of California from BBU, Inc., a subsidiary of Grupo Bimbo S.A.B. de C.V. Financial terms of the transaction were not disclosed.
On Oct. 26, 2012, Flowers announced that the US Department of Justice had approved this agreement, along with a separate one for the acquisition of the perpetual, exclusive, and royalty-free license to the Earthgrains brand for fresh bakery products in the Oklahoma City, OK., market area. The Oklahoma transaction was completed in 2012. Together with the California agreement, the brands generate approximately $134 million in annual sales.
"Our team has been working to ensure a smooth transition of these brands in California. Now that the transaction has closed, the rollout of Sara Lee and Earthgrains products on our distribution routes will begin immediately in Southern California and continue northward in phases over the coming months," said George E. Deese, Flowers Foods' chairman of the board and CEO.
This acquisition strengthens Flowers Foods' market presence in California, adding about 14.5 million people to the 70% of the U.S. population that currently has access to its fresh breads and rolls.
Web Site: http://www.flowersfoods.com