THOMASVILLE, Ga. (AP) — Flowers Foods Inc. is buying Tasty Baking Co., maker of Tastykakes, for about $34.4 million in cash.
Flowers, a packaged bakery foods maker whose brands include Nature's Own and Whitewheat, said Monday that the deal will expand its geographic reach, bring in new customers and broaden its snack product line.
Tasty, based in Philadelphia, will become part of Flowers' direct-store-delivery business once the acquisition closes. Tasty said in January it was considering a merger or even a sale.
Thomasville, Ga.-based Flowers is paying $4 a share for Tasty Baking's 8.6 million shares outstanding. Its shares closed at $1.61 a share on Friday. Including assumed debt, the companies say the deal is worth $165 million.
Both companies' boards have unanimously approved the deal. The acquisition is expected to close during the second quarter.