Flowers Foods Inc., Thomasville, Ga., has entered into a definitive merger agreement with Phoenix-based Holsum Bakery Inc., pending regulatory approval under the Hart-Scott-Rodino Act and other conditions. Under the merger agreement, Holsum Bakery would become a wholly-owned subsidiary of Flowers Foods in exchange for cash and Flowers' stock. Flowers Foods also will buy ButterKrust Bakery, Lakeland, Fla., for an undisclosed sum. ButterKrust Bakery, with annual sales of $70 million, is a privately owned company that employs 368 people. Flowers Foods' brands include Country Hearth, Rich Harvest and Sunbeam.

Bimbo Bakeries USA (BBU) recently inaugurated its new Innovation and Nutrition Institute at Mrs. Baird's bakery complex, Fort Worth, Texas. The facility is one of four in the world, serving as part of a commitment made by BBU's parent, Grupo Bimbo, to the World Health Organization. The other institutes are located in Toluca, Mexico; Sao Paulo, Brazil; and Mexico City. The Fort Worth facility will house sophisticated equipment to test and develop new products and modify existing ones. Lab testing capabilities include flour, texture and sensory analysis and shelf-life simulation. The baking lab is equipped for dough mixing, rounding, moulding, proofing, baking, frying, slicing and bagging finished product.

Arbor Investments, Chicago, completed the acquisition of Chicago-based Gold Standard Baking Inc. David Shanholtz, a 20-year veteran of the baking industry, has been named president and C.E.O. Gold Standard produces croissants, Danish, breads, rolls and muffins. “Gold Standard exemplifies the type of high-quality food manufacturer that Arbor seeks for its portfolio,” says Arbor partner Joseph Campolo. “Gold Standard has thrived under the ownership of the Caparos family, and we are thrilled to be acquiring the business as it enters its next stage of growth.” George, Helene and Constantin Caparos will remain active in the company's daily operations and will retain partial ownership.