Flowers Foods has agreed to purchase Auburn, Maine-based Lepage Bakeries Inc. in a $370 million cash and stock deal. The deal will close in Flowers Foods’ fiscal second quarter and Lepage will become a subsidiary.
The acquisition boosts Thomasville, Ga.-based Flowers Foods’ presence in New England and New York, gives it three bakeries, helps expand its Nature’s Own and Tastykake brands in the Northeast and will bring about $166 million in annual net sales. In addition, Flowers Foods expects the deal to grow its direct-store-delivery access from 64 percent to 70 percent of the U.S. population.
Lepage makes popular Northeastern brands Country Kitchen and Barowsky’s. Current Lepage executives Andrew Barowsky and Albert Lepage will continue to lead their company as co-chairmen, while Barowsky also will serve as Flowers' vice chairman of innovation, the company said.