Alpine Valley Bread will become a subsidiary of Flowers Foods Inc.

Flower Foods Inc. has made the decision to acquire Alpine Valley Bread Company which is a family-owned natural bread producer for $120 million in cash and stock as reported by Source Media.

Alpine was established in 1997 and makes organic bread under the Super Grains, 21 Whole Grains and Multi Grain Omega-3 brands. It is owned by the Woods family that bakes bread which is all-natural and free from artificial ingredients. It currently has two bakeries in Mesa, Arizona with 282 employees and is forecasting 2016 sales of up to $95 million.

Other Alpine products include Sprouted Wheat with Flaxseed and other breads. These are USDA Organic Certified, Non-GMO Project verified and kosher verified.

According to The Business Review, Flowers will finance 90% of the obtainment using revolving credit facility and available cash while the rest of the 10% will be funded with common stock. With regard to monetary 2015 earnings, the company anticipates the transaction to have an impartial effect.

Flowers Foods president and CEO Allen L Shiver said: "Alpine Valley Bread Company will further strengthen our company. With its extensive portfolio of on-trend organic products, Alpine Valley has a deeply rooted culture of excellence, service, and commitment. We are especially pleased to welcome Alpine's team members who will bring expertise in the development, production, and delivery of organic breads to Flowers."

Alpine Valley Bread Company CEO Todd Wood said: "Flowers Foods brings resources we need and we are pleased with Flowers' commitment to keep our brands and our bakeries true to what has made our growth possible---making bread with a carefully developed process with pure and simple ingredients.

The acquisition of Alpine Valley is the second for Flowers Foods after a month, as reported by Mergers & Acquisitions. It comes after when the Thomasville, Georgia-based Flowers said that it will purchase another organic bread baker named Dave's Killer Bread, amounting to $275 million in August. Once the transaction is completed Alpine will stay an independent Flowers subsidiary, according to Source Media.

Deutsche Bank AG (NYSE: DB) and Jones Day will be advising Flowers. IBG/Fox & Gin and Greenberg Traurig LLP would serve as Alpine's advisers.