THOMASVILLE, Ga., Nov. 7, 2018 (PRNewswire) — Flowers Foods, Inc. on Wednesday announced a definitive agreement to acquire Canyon Bakehouse LLC, a privately held, gluten-free baking company based in Johnstown, Colorado, for approximately $205 million. The acquisition, which is subject to regulatory approval and customary closing conditions, is expected to be completed later in the fourth quarter of 2018.
Canyon Bakehouse offers a line of 21 gluten-free breads, buns, bagels, English muffins, and specialty items. Almost 90 percent of its sales are distributed frozen through natural, specialty, grocery, and mass retailers around the country, with the remainder sold fresh. The Canyon Bakehouse brand is the top gluten-free loaf brand in natural and specialty food stores,1 the number-two brand in the overall gluten-free loaf category and the fastest-growing gluten-free bread loaf brand in the U.S.2
The company was founded by Josh and Christi Skow and Ed Miknevicius in 2009, after Christi was diagnosed with celiac disease. Canyon Bakehouse now employs 206 people and operates in a recently constructed 165,625-square-foot bakery with two production lines in Johnstown. After the transaction, Josh will continue to lead the business as president and Christi will serve as brand ambassador.
"Canyon Bakehouse is an innovative leader in a growing segment of the bakery category, which closely aligns this acquisition with our strategic goals," said Allen Shiver, Flowers' president and chief executive officer. "They have great products, a talented team of employees, a state-of-the-art gluten-free bakery, and a brand with an enthusiastic fan following. We see opportunities to leverage Flowers Foods' distribution network and retail partnerships to drive growth by bringing Canyon Bakehouse products to more consumers across the country. We look forward to welcoming Josh, Christi and the rest of Canyon Bakehouse's employees to the Flowers team."
Canyon Bakehouse CEO and Founder Josh Skow said, "Since the beginning, the mission of Canyon Bakehouse has been to help those who have given up gluten to Love Bread Again. We are tremendously pleased with the brand, the products and the teams that we have developed and grown over the past nine years, and we are thankful for the many partners who have helped us along the way. We are now very excited about the opportunities for our company alongside Flowers Foods. With Flowers' national reach, we will be able to bring our gluten-free products to many more consumers. Flowers shares our passion for baking and they understand what makes our company and our products unique. We look forward to joining the Flowers Foods family."
1SPINS Natural and Specialty Outlet Gluten Free Loaf Bread for 52 Weeks Ending 10-07-18
2IRI Custom Database MultiOutlet + SPINS Natural and Specialty Gluten Free Loaf Bread for 12 Weeks Ending 10-07-18
About Flowers Foods
Headquartered in Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest producers of fresh packaged bakery foods in the United States with 2017 sales of $3.9 billion. Flowers operates bakeries across the country that produce a wide range of bakery products. Among the company's top brands are Nature's Own, Wonder, Dave's Killer Bread, and Tastykake. Learn more at www.flowersfoods.com.
