Flowers Foods, Tasty Baking Company Merge

Tastykake will strengthen Flowers' snack cake business and geographic reach.

April 13, 2011

THOMASVILLE, Ga. - Flowers Foods and Tasty Baking Company announced this week a definitive merger agreement whereby Flowers will acquire all of the outstanding shares of Tasty common stock for $4 per share in cash for a total purchase price of approximately $165 million, including Tasty??s existing indebtedness.

The transaction is expected to strengthen Flowers?? snack cake business through the addition of the iconic Tastykake snack cake brand, as well as expand Flowers?? geographic reach, which will immediately add more than 24 million consumers who are contiguous with Flowers?? current footprint, add two highly efficient bakeries with additional capacity to support growth, and generate significant operating synergies through additional revenue and cost-saving opportunities.

"We are very pleased with the addition of Tasty to Flowers," said George E. Deese, Flowers Foods?? chairman and CEO. "With the addition of Tasty, our snack cake business will be significantly enhanced and we will have a new platform to grow our Nature??s Own brand as we make other acquisitions that add needed production capacity for breads, buns, and rolls."

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