Among the products produced by Canyon Bakehouse LLC is this family of gluten-free breads. Courtesy Canyon Bakehouse

Canyon Bakehouse inks $205M deal to sell

JOHNSTOWN — Flowers Foods Inc. (NYSE: FLO) of Thomasville, Ga., has signed an agreement to buy Johnstown-based Canyon Bakehouse LLC, a gluten-free baking company.

The deal was valued at $205 million and is expected to close in the fourth quarter of this year.

Among the products produced by Canyon Bakehouse LLC is this family of gluten-free breads. Courtesy Canyon Bakehouse

Canyon Bakehouse was founded in Loveland in 2009 by Christi and Josh Skow and their baker partner Ed Miknevicius. The company grew out of Christi’s Celiac disease diagnosis in 2007. Celiac is a disease characterized by an intolerance or allergy to gluten, which is found in wheat and many other grains. Those with the disease are affected not only by direct consumption of gluten but also by indirect contact with gluten when food is produced in the same facility or restaurant as gluten products.

The company moved its operations to 3600 Ronald Reagan Blvd. in Johnstown in 2017 and consolidated operations in a 165,625 square foot bakery building, where it runs two production lines.

Canyon Bakehouse offers a line of 21 gluten-free breads, buns, bagels, English muffins, and specialty items. Almost 90 percent of its sales are distributed frozen through natural, specialty, grocery, and mass retailers around the country, with the remainder sold fresh. The Canyon Bakehouse brand is the top gluten-free loaf brand in natural and specialty food stores, according to the trade press, and the number-two brand in the overall gluten-free loaf category and the fastest-growing gluten-free bread loaf brand in the U.S.

Josh Skow will continue with the company after the transaction is closed as president. Christi Skow will serve as brand ambassador.

“Canyon Bakehouse is an innovative leader in a growing segment of the bakery category, which closely aligns this acquisition with our strategic goals,” Allen Shiver, Flowers’ president and CEO, said in a written statement. “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.”

“Since the beginning, the mission of Canyon Bakehouse has been to help those who have given up gluten to love bread again,” said Josh Skow. “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 it understands what makes our company and our products unique.”

Canyon Bakehouse has generated a compound annual net sales growth rate of approximately 45 percent since 2014. The gluten-free packaged bread category nationwide has grown at a compound annual growth rate of 6.6 percent per year since 2015, outperforming the broader $14.5 billion U.S. retail baked goods market. The company has anticipated 2019 sales of approximately $70 million to $80 million.

Flowers Foods is one of the largest producers of fresh packaged bakery foods in the United States with 2017 sales of $3.9 billion. Flowers operates bakeries across the country that produce a wide range of bakery products with brands such as Nature’s Own, Wonder, Dave’s Killer Bread, and Tastykake.

JOHNSTOWN — Flowers Foods Inc. (NYSE: FLO) of Thomasville, Ga., has signed an agreement to buy Johnstown-based Canyon Bakehouse LLC, a gluten-free baking company.

The deal was valued at $205 million and is expected to close in the fourth quarter of this year.

Among the products produced by Canyon Bakehouse LLC is this family of gluten-free breads. Courtesy Canyon Bakehouse

Canyon Bakehouse was founded in Loveland in 2009 by Christi and Josh Skow and their baker partner Ed Miknevicius. The company grew out of Christi’s Celiac disease diagnosis in 2007. Celiac is a disease characterized by an intolerance or allergy to gluten, which is found in wheat and many other grains. Those with the disease are affected not only by direct consumption of gluten but also by indirect contact with gluten when food is produced in the same facility or restaurant as gluten products.

The company moved its operations to 3600 Ronald Reagan Blvd. in Johnstown in 2017 and consolidated operations in a 165,625 square foot bakery building, where it runs two production lines.

Canyon Bakehouse offers a line of 21 gluten-free breads, buns, bagels, English muffins, and specialty items. Almost 90 percent of its sales are distributed frozen through natural, specialty, grocery, and mass retailers around the country, with the remainder sold fresh. The Canyon Bakehouse brand is the top gluten-free loaf brand…