Zoom-boing
Platinum Member
When I was a kid growing up in Philadelphia, there was nothing that made me happier well, other than listening to Harry the K calling another moonshot by Michael Jack Schmidt into the dancing waters in centerfield at the Vet than a package of Tastykakes. Jelly krimpets. Or butterscotch krimpets. Chocolate cupcakes. Dutch apple pies. And, best of all, chocolate Kandy Kakes.
So Ive been watching with concern in recent months as Tasty Baking (TSTY) fell into financial disarray.
But this morning, the company has been saved.
Flowers Foods (FLO), a company based in Thomasville, Georgia (eew, Braves territory) announced a deal to acquire Tasty Baking for $4 a share in cash, for a total price of about $165 million, most of that the assumption of existing debt. Flowers said the deal will add $115 million to $125 million to its 2011 sales, generating $10 million to $12 million in additional 2011 EBITDA. Flowers said the deal will be neutral to slightly accretive to 2011 EPS.
Flowers expects the deal to boost 2012 rcvs by $210 million to $225 million, contributing $25 million to $30 million in EBITDA, and 6-9 cents a share in profits. The deal is expected to close in the second quarter.
Flowers Buys Tastykake; All The Good Things Wrapped Up In One - Eric Savitz - The Tech Trade - Forbes