USA – Flowers Foods, the American premier baker has agreed to acquire Canyon Bakehouse, a gluten-free baking company based in Colorado, for approximately US$205 million.
This includes a performance-based contingent payment of US$5 million, subject to regulatory approval and customary closing conditions.
The transaction is expected to be completed later in the fourth quarter of 2018.
“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.”
Founded by Josh and Christi Skow and Ed Miknevicius in 2009, Canyon Bakehouse offers a line of 21 gluten-free breads, buns, bagels, English muffins, and specialty items.
Almost 90% 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.
It employs 206 people and operates in a recently constructed 165,625-square-foot bakery with two production lines in Johnstown.
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.”