Organic Bread Producer Alpine Valley Signs Acquisition Agreement

Flowers Foods Inc. has signed a definitive agreement to acquire Alpine Valley Bread Co., a family-owned producer in Mesa, Ariz., 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 completed in the fourth quarter.

Alpine Valley was founded in 1997 by the Wood family with a vision to bake bread that was organic and free from artificial ingredients. From its first bakery in a strip mall, Alpine Valley has grown to serve national retail grocers, specialty healthy living stores and club retailers. Its product line includes Super Grains, 21 Whole Grains, Multi Grain Omega-3, Sprouted Wheat with Flaxseed and other breads that 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.

“Alpine Valley Bread Co. 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.”

Todd Wood, Alpine Valley’s chief executive officer, expressed excitement about the support Flowers Foods will offer to expand the reach of products made in its 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. 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 percent over 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. 

Flowers plans to fund approximately 90 percent of the purchase price for the acquisition using its existing revolving credit facility and available cash, and approximately 10 percent with Flowers Foods common stock. The company anticipates the transaction will be neutral to fiscal 2015 earnings.