Flowers Foods has agreed to acquire Canyon Bakehouse, a gluten-free baking company based in Colorado, for approximately $205 million.
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 retailers in the US. The firm is said to have generated a compound annual net sales growth rate of approximately 45% since 2014.
The company was founded by Josh and Christi Skow and Ed Miknevicius in 2009 after Christi was diagnosed with celiac disease. It now employs 206 people and operates in a new 165,625-square-foot bakery with two production lines in Johnstown, Colorado.
After the transaction, which is expected to be completed in the fourth quarter of 2018, Josh Skow will continue to lead the business as president and Christi Skow will serve as brand ambassador.
Flowers Foods president and CEO Allen Shiver said: “Canyon Bakehouse is an innovative leader in a growing segment of the bakery category, which closely aligns this acquisition with our strategic goals.
“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.”
Canyon Bakehouse CEO and founder Josh Skow added: “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.”
© FoodBev Media Ltd 2019
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