Georgia-based bakery Flowers Foods and Tasty Baking Co. have agreed to a sale of Philly's troubled baked good institution for $165 million, buying up all of Tasty's 8.5 million shares and absorbing the $131 million of debt that almost shuttered the doors of the creators of Kandy Kakes, TastyPies and yes - the super-delicious Butterscotch Krimpet.
Here's more from the Philly.com blog, PhillyDeals:
The deal is part of Flowers' ambitious strategy to grow beyond the South into a national chain of fresh and frozen snacks. Flowers says it will keep Tasty's new $80 million bakery at the Navy Yard complex in South Philadelphia and its second plant in Oxford, Chester County.
Flowers wants to sell Mrs. Freshley's sweet rolls, Nature's Own breads and other Flowers products "throughout Tasty's geographic footprint" in the mid-Atlantic states, and "will require additional acquisitions to add needed production capacity" to make that happen. Flowers also said it will offer Tastykakes down South. Spokeswoman Mary Crier had no immediate comment on what happened to a 2002 joint distribution deal between the companies.
Here's hoping we continue to be able to sing that "Nobody bakes a cake as tasty as a Tastykake" for many years to come. Krimpets crossed...
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