Derst Baking was founded in 1867, and supplies breads and rolls to South Carolina, eastern Georgia and northern Florida. The family-owned baker has annual sales of about $50 million, employs 475 people and operates 165 direct-store-delivery routes.
"The merger will provide more efficient services as well as new products and brands throughout the territories served, which will benefit Flowers Foods and Derst Baking as well as our customers," said George Deese, Flowers Foods' chairman of the board and chief executive officer.
The Derst Baking acquisition follows Flowers Foods' recent acquisitions of a 115,000-sq.-ft. plant in Newton, N.C., and Royal Cake, Winston-Salem, N.C. These acquisitions give the company much needed production capacity.
The Derst Baking acquisition capped off a successful year for Flowers Foods. The company reported a 21% net income increase in fiscal 2005, compared to the prior year. The company's 2005 sales were $1.72 billion, a 10.6% increase compared to the prior year.
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