THOMASVILLE, GA -- Flowers Foods Inc., maker of Mrs. Freshley's pastries, a popular item in vending, has agreed to buy Lepage Bakeries Inc. for $370 million.
The deal includes two bakeries and a direct-store-delivery platform that Flowers said will speed the expansion of its Nature's Own and Tastykake brands in the Northeast. The Thomasville, GA, company expects the deal to grow its direct-store-delivery access from 64% to 70% of the U.S. population.
Lepage Bakeries, based in Auburn, ME, makes breads, buns and rolls under the regional Country Kitchen and Barowsky's brands.
The company will operate under its current name as a subsidiary of Flowers Foods's DSD segment. Lepage's current president and chief executive Andy Barowsky and chairman Albert Lepage will continue to lead their company as co-chairmen.
Under the terms of the deal, Flowers will pay $300 million in cash and $50 million in stock for LePage. The agreement also calls for a total of $20 million in deferred cash payments that begin on fourth anniversary of the agreement. The sale is expected to close during Flowers' fiscal second quarter.
The Lepage purchase follows Flowers Foods $165 million acquisition of Philadelphia-based Tastykake last year. | READ STORY