Flowers Foods to acquire organic breadmaker Alpine Valley Bread Company in $120m deal

08-Sep-2015 - Last updated on 09-Sep-2015 at 15:08 GMT

Alpine Valley has "an extensive portfolio of on-trend organic products", says Flowers

Flowers Foods – which has just snapped up Dave’s Killer Bread for $275m – has made another move into the fast-growing organic bakery category with a $120m deal to acquire Alpine Valley Bread Company.

Under the deal, which is expected to be completed in the fourth quarter, Alpine will operate as an independent subsidiary of Flowers, said Flowers CEO Allen L. Shiver.

"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."

With anticipated fiscal 2016 sales of approximately $85-95m, Alpine Valley has generated a compound average revenue growth rate of approximately 51% over the past three years, said Shiver, who noted that according to IRI data, the organic bread market has grown at a rate of 27% over the past four years, “significantly outperforming the broader $23bn US retail baked goods market”.

Family-owned Alpine Valley Bread Company - which was founded in 1997 – now supplies several national grocery retailers, specialty healthy living stores, and club retailers with products including 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.

It employs 282 and operates two bakeries in Mesa, Arizona.