The local managers of Love's Bakery said it will buy the company from its Japanese-based owner in a transaction set to close in the next two months.

An agreement has been signed between the local management and Japan-based First Baking Co. on the purchase of the 157-year old company. Daiichiya-Love's Baker Inc. is the state's largest producer of bread and bakery products.

"This agreement will preserve the jobs of our 349 employees and our ability to produce freshly baked bread right here in Hawai'i," said Mike Walters, Daiichiya-Love's president, in a press statement.

Love's said First Baking had owned it since 1981 and approached Walters about buying the business. Employees were told last month that a purchase was pending. The buyers have assured workers that their jobs are secure, Love's said.

The wholesale bakery produces products under its own name as well as those under the Roman Meal and Milton's brands that are sold through grocery and other stores.

Walters will become president and chief operating officer of a new company that's been formed to acquire the bakery. Other executive officers include Byron Chong, vice president and director of sales and marketing; Alan Yamada, director of administration; and Jean Hagi, director of human resources.

Walters said the new owners plan to revitalize the company. In this respect the buyers said a number of measures are planned, including investing in new boilers and air compressors and upgrade of its fleet, while examining ways to reduce Neighbor Island distribution expenses.

The buyers said they also planned to publicize information about the amount of frozen bread being shipped in from the Mainland and sold to people in the state.

Love's said Warren Luke, chief executive officer of Hawaii National Bank, along with he ILWU Local 142, U.S. Sen. Daniel Inouye and others played a role in supporting the purchase by local managers.