Tasty Baking SOLD!
A Georgia-based company is taking over Philadelphia’s Tasty Baking Company.
Since Tasty’s profits went stale in the economic downturn, along with the roughly $100-million debt to build and move into its new plant in the Navy Yard in South Philadelphia, a larger competitor, Flowers Foods has been mentioned as a suitor.
The Flowers statement calls it a “definitive merger agreement” whereby Flowers will acquire all of the outstanding shares of Tasty common stock for $4.00 a share, for a total purchase price of about $165-million. That includes the debt Tasty has taken on.
Industry observers believe it’ll strengthen Flowers’ snack cake business through the addition of the iconic Tasty cake brand, and expand the company’s geographic reach.