Flowers Foods, Inc., has reportedly signed a definitive deal to buy the Colorado-based gluten-free baking company Canyon Bakehouse LLC. As per trusted sources, the acquisition is being valued at about USD 205 million or USD 175 million net of future tax benefits out of USD 30 million on the net current value basis.
Reportedly, the takeover is anticipated to be concluded by the end of 2018 and is subject to customary closing conditions and regulatory approval.
President and Chief Executive Officer of Flowers Foods, Allen Shiver was reportedly quoted stating that Canyon Bakehouse has a state-of-the-art gluten-free bakery, talented team of employees, great products, and a brand which has an overwhelming fan following. It has emerged as an innovative leader in a burgeoning segment of the bakery category and its acquisition is in line with the strategic goals of Flowers Foods. The company will leverage the distribution network and bring in products of Canyon Bakehouse to more consumers across the nation, Shiver further added.
According to a press release issued by Flowers Foods
, the company expects that the deal would be accretive to its fiscal earnings of 2020. It intends to fund the transaction with existing credit and cash on-hand facilities.
For this deal, Integris Partners served as financial advisor for Canyon Bakehouse, while Brownstein Hyatt Farber Schreck, LLP represented as its legal counsel. Deutsche Bank served as the exclusive financial advisor to Flowers Foods and Jones Day served as the legal advisor, cite sources.
Founder and Chief Executive Officer of Canyon Bakehouse, Josh Skow reportedly commented that the company is thrilled to leverage new opportunities alongside Flowers Foods and would now be able to introduce more gluten-free products to consumers. The firm takes immense pride in all the products and teams that have been built and is grateful to numerous partners who have helped Canyon Bakehouse, Skow further added.