S&P: Flowers Foods unchanged

Standard & Poor's said that the ratings and outlook on Flowers Foods Inc. (BBB-/stable) are unaffected following its announcement that it has entered into a definitive merger agreement with Holsum Bakery Inc.

The agency said that Holsum has annual sales of about $146 million and operates two bakeries around Phoenix, Ariz., a new market for Flowers.

Flowers will finance the $150 million purchase price with equal amounts of cash and company stock, S&P said, noting that it believes credit measures will not change materially as the company's existing strong metrics compensate for the company's narrow business focus and exposure to commodity price fluctuations.

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