Flowers Foods funds $205 million Canyon Bakehouse purchase ‘comfortably’ with existing loans

By Devika Patel

Knoxville, Tenn., Nov. 8 – Flowers Foods, Inc. will use cash on-hand and existing credit facilities to acquire Canyon Bakehouse LLC for $205 million, which it will be able to fund “comfortably.”

As of the end of the last quarter, the company had approximately $685.9 million of liquidity available under its credit facilities.

“This availability plus cash on hand allows us to comfortably fund the Canyon Bakehouse acquisition and continue to maintain a conservative financial position,” chief financial officer R. Steve Kinsey said on the company’s third quarter ended Oct. 6 earnings conference call on Thursday.

The company had $775.6 million of net debt at the end of the quarter.

As of Oct. 6, the company’s net debt to trailing 12 months adjusted EBITDA ratio was 1.8x.

The acquisition is expected to be completed later this quarter.

Flowers Foods is a Thomasville, Ga.-based producer and marketer of packaged bakery foods for retail and foodservice customers.

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