THOMASVILLE, Ga., June 23 /PRNewswire-FirstCall/ -- Flowers Foods, Inc.
(NYSE: FLO) today announced it has entered into a definitive merger agreement
with Holsum Bakery, Inc. The agreement is subject to regulatory approval under
the Hart-Scott-Rodino Act and other conditions. The merger will be structured
as a merger of a wholly owed subsidiary of Flowers in exchange for cash and
Flowers stock. The announcement was made today by officials of both companies.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080530/CLF007LOGO )
Holsum Bakery, which operates profitably on annualized sales of
approximately $146 million, is a family-owned business with two bakeries in
the Phoenix area. The company employs 580 people and sells its products
through independent distributors that serve retail and foodservice customers
in Arizona, New Mexico, southern Nevada and Southern California with fresh
breads and rolls under the Holsum, Aunt Hattie's, and Roman Meal brands.
George E. Deese, Flowers Foods' chairman of the board, chief executive
officer and president said, "We are fortunate to have this fine organization
merge with Flowers Foods. The Eisele family name is one of the oldest and most
respected in the baking industry. Holsum and Flowers have similar operating
strategies and business ethics. This merger of Holsum and Flowers further
strengthens our operations and brings new talent to our company. We look
forward to the growth opportunities the merger will provide as we
strategically expand our geographic footprint and continue to build value for
our shareholders."
Commenting on the merger, Ed Eisele, president and majority owner of
Holsum, said, "Our team is pleased to become part of Flowers Foods. Our
companies have a shared commitment to the highest quality products, excellent
customer service, and constant innovation and investments to keep our bakeries
the best in our industry. It also is important to note that the culture within
Flowers and Holsum is nearly identical and this will be a great fit for both
organizations. We truly look forward to expanding into new geographies with an
even broader product line than we have today."
Deese noted that Eisele will continue to lead the business when the merger
is completed. Holsum Bakery, Inc. will operate under its current name as a
part of Flowers Foods. "Under Ed's leadership, Holsum Bakery has achieved
strong sales and earnings growth and we expect that growth trend to continue
once the merger is accomplished," Deese said.
Holsum Bakery, Inc., established in 1881, is Arizona's oldest family-owned
business. Holsum provides fresh bakery products to retail and foodservice
customers in Arizona, New Mexico, Southern California, and southern Nevada.
Holsum is the market-share leader in the region with its Holsum, Aunt
Hattie's, and Roman Meal breads and rolls. Operating two bakeries in Arizona,
Holsum has a reputation for quality, freshness, and nutrition.
Headquartered in Thomasville, Ga., Flowers Foods, with annual sales of
over $2.02 billion, is one of the nation's leading producers and marketers of
packaged bakery foods for retail and foodservice customers. Flowers operates
36 bakeries that produce a wide range of bakery products marketed throughout
the Southeastern, Southwestern, and mid-Atlantic states via an extensive
direct-store-delivery network and nationwide through other delivery systems.
Among the company's top brands are Nature's Own, Nature's Own Whitewheat,
Cobblestone Mill, Sunbeam, Blue Bird, and Mrs. Freshley's. For more
information, visit www.flowersfoods.com.
SOURCE Flowers Foods, Inc.
Analysts: Marta J. Turner, Executive VP-Corporate Relations of Flowers Foods,
+1-229-227-2348, or Media: Mary A. Krier, VP-Communications of Flowers Foods,
+1-229-227-2333; or Donna Klein, Executive Assistant of Holsum Bakeries,
+1-602-229-8108
