News Brief

Flowers Foods Acquires Some Sara Lee Assets

Flowers Foods, Inc. is acquiring bakery-products rights to Sara Lee and Earthgrains brands in California, and the Earthgrains brand in the Oklahoma City, Okla. market.

Flowers announced that the U.S. Dept. of Justice has approved the agreement for Flowers to acquire the assets from BBU, Inc., a subsidiary of Grupo Bimbo S.A. B. de C.V.

Specifically, Flowers will have "perpetual, exclusive, and royalty-free licenses" to the Sara Lee and Earthgrains brands for sliced breads, buns, and rolls in California, which together account for annual sales of approximately $134 million. Additionally, Flowers will have the same rights for the Earthgrains brand for a broad range of fresh bakery products in the Oklahoma City market area.

The transactions will be completed in phases. The Oklahoma City license will be completed shortly, and the first phase of the California transaction is expected to close in the first quarter of fiscal 2013.

Tags: food, m&a
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