Flowers reacquires bakery facility in Suwanee, Ga.
January 14, 2008
by Eric Schroeder
THOMASVILLE, GA. — Flowers Foods, Inc. has purchased a bakery building in Suwanee, Ga., from The Schwan Food Co., Marshall, Minn. Terms of the transaction were not disclosed.
Flowers, which built the bakery in 1999 and an adjacent freezer in 1996, sold the property to Schwan in 2003 as part of the sale of the Mrs. Smith’s business. Since 2003, Flowers has operated the bakery under the terms of a building lease with Schwan.
Once the transaction is finalized, Flowers said it will continue to produce hearth-baked buns, rolls and bagels in the Suwanee bakery facility for retail and food service customers.
"When we sold the Suwanee facility to Schwan, our plan was to operate the bakery as long as possible and then move the equipment to another facility," said George E. Deese, chairman, chief executive officer, and president of Flowers Foods. "Reacquiring the building allows us to keep production running without interruption, provides us with operational certainty regarding future production, and creates opportunities for expansion of the existing bakery to accommodate additional volume."
In a separate transaction, Schwan sold the adjacent freezer facility in Suwanee to CPA: 16 - Global, a REIT affiliate of investment firm W. P. Carey & Co. L.L.C. for approximately $25 million. Flowers, meanwhile, has entered into a 15-year lease agreement with W. P. Carey for a portion of the available pallet positions in the freezer.