Flowers Foods Inc. has completed acquisition of the perpetual, exclusive and royalty-free licenses to the Sara Lee and Earthgrains brands in California from BBU Inc., a subsidiary of Grupo Bimbo. Financial terms of the transaction were not disclosed.
The United States Department of Justice approved the agreement in October 2012, along with a separate one for the acquisition of the perpetual, exclusive and royalty-free license to the Earthgrains brand for bakery products in Oklahoma City, Okla.. Together with the California agreement, the brands generate about $134 million in annual sales
"Our team has been working to ensure a smooth transition of these brands in California. Now that the transaction has closed, the rollout of Sara Lee and Earthgrains products on our distribution routes will begin immediately in Southern California and continue northward in phases over the coming months," George E. Deese, Flowers Foods' chairman of the board and CEO, said in a statement.