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Flowers Foods acquire Tasty Baking
20 April 2011: Flowers Foods, packaged bakery foods company, has signed a definitive deal to acquire Tasty Baking Company, a baker of snack cakes and donuts, for $4 per share or $165 million (approx Rs 742.5 crore) in cash, including Tasty's existing debt. The company expects the transaction to be neutral to slightly accretive to its 2011 earnings per share, excluding one-time transaction costs.
Under the terms of the deal, Thomasville, Georgia-based Flowers will commence a tender offer to acquire all of the outstanding common shares of Tasty for $4 per share. Flowers intends to fund the transaction through cash-on-hand and credit facilities. There is no financing condition to the offer.
Both companies' boards have unanimously approved the agreement. The transaction is expected to close during the second quarter of 2011. Upon completion of the transaction, Tasty will become part of Flowers' direct-store-delivery segment. The transaction is expected to strengthen Flowers' snack cake business through the addition of the Tastykake snack cake brand.
Source: RTT