Less than a month after announcing a deal to acquire the largest organic bread company in the U.S. for $275 million, Georgia-based Flowers Foods announced it has agreed to acquire organic and all natural bread company, Alpine Valley Bread, for $120 million in cash and stock.

 

Founded in 1997 in Mesa, Arizona by the Wood family, Alpine Valley Bread’s product line has grown to include Super Grains, 21 Whole Grains, Multi Grain Omega-3, Sprouted Wheat with Flaxseed organic breads, including other breads that are certified by the Non-GMO Project, certified USDA organic, and certified as being kosher.

 

"Alpine Valley Bread Company will further strengthen our company," said Allen L. Shiver, Flowers' president and chief executive officer in a press release. "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."

 

Over the past three years, Alpine Valley has generated a compounded average revenue growth rate of 51%, and the company expects to report sales of between $85 million and $95 million for fiscal year 2016. The organic bread market has shown growth of 27% over the past four years, according to IRI data, outperforming the traditional U.S. retail baked good market worth $23 billion.

 

Flowers Foods plans to fund 90% of the purchase through its existing revolving credit facility and cash on hand. The remaining 10% of the cost will be financed with Flowers Foods common stock. Flowers Foods is one of the largest packaged baked goods producers in the U.S. with 2014 sales reaching $3.75 billion. Flowers Foods produces multiple lines of bakery products including Nature’s Own brand, which is free of artificial preservatives, colors and flavors, and is the top-selling bread brand in the U.S. with sale in excess of $1 billion.