THOMASVILLE, GA -- Flowers Foods Inc. has completed its acquisition of Tasty Baking Co. for $175 million announced in April. | SEE STORY
The 100-year-old Philadelphia company behind the iconic Tastykake brand is now a wholly owned subsidiary of Flowers Foods and part its direct-store-delivery segment. Tasty Baking posted $170 million in sales last year.
With the addition of Tasty Baking's distribution network, Flowers said it now has access to 61% of the U.S. population through direct store delivery.
Flowers chief executive George Deese said the company's strategy includes extending the Tastykake brand to consumers in the South and Southwest, and introducing its Nature's Own breads through Tasty Baking's distribution throughout the Northeast.
The Thomasville, GA, company, which posted 2010 sales of $2.6 billion, operates 41 bakeries, including two gained through the acquisition, and distributes fresh bakery products through its DSD system in the Southeast, mid-Atlantic, and Southwest. It also produces and distributes fresh snack cakes, including the Mrs. Freshley's brand popular in vending, and frozen breads and rolls nationally through warehouse distribution.
With the completion of the merger, Tasty Baking's common stock ceased trading on the Nasdaq Global Market at the close of market on May 24 and is no longer listed.
Separately, Flower's board of directors declared a three-for-two split of the company's stock by means of a 50% stock dividend; it's payable on June 24 to shareholders of record on June 10. Following the split, Flowers shareholders will own three shares for every two shares they held on the record date.