Flowers Foods to Sell Mrs. Smith's

THOMASVILLE, Ga. - Packaged bakery foods company Flowers Foods Inc. on Thursday reported a fourth-quarter loss of $9.9 million, or 33 cents a share, while announcing plans to sell its Mrs. Smith's Frozen Dessert business less than a year after the company started restructuring, according to Dow Jones newswire.

In a press release Thursday, the packaged bakery foods company said it agreed to sell the Mrs. Smith's dessert business to privately held Schwan Foods for $240 million in cash. Flowers will retain the frozen bread and roll portion of Mrs. Smith's.

The sale includes production and packaging plants in Oklahoma, South Carolina and Pennsylvania, and the assets of the Pet-Rits frozen desserts brands. The company estimates the business going to Schwan produces about $350 million in annual sales.

Flowers reported sales of $1.65 billion in 2002, up from $1.63 billion the year before.
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