Flowers Foods Inc. has completed 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.
In October 2012, Flowers announced that the United States 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, Okla., 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 Thomasville, Ga.-based Flowers Foods’ market presence in California, adding about 14.5 million people to the 70 percent of the U.S. population that currently has access to its fresh breads and rolls.
