Flowers Foods plans new credit facility for Tasty Baking purchase

By Sara Rosenberg

New York, April 11 - Flowers Foods plans on getting a new credit facility to help fund its acquisition of Tasty Baking Co., according to an 8-K filed with the Securities and Exchange Commission on Monday.

Under the agreement, Flowers will buy all of Tasty's common stock for $4.00 per share in cash for a total purchase price of about $165 million, including Tasty's existing debt.

The purchase of Tasty's shares will be done through a tender offer.

Other funds for the transaction will come from cash on hand.

Closing is expected during the second quarter, subject to customary conditions and approvals, as well as a majority of the outstanding shares of Tasty common stock being validly tendered. There is no financing condition to the offer.

The acquisition is expected to add roughly $115 million to $125 million to Flowers' 2011 sales and about $210 million to $225 million to 2012 sales, as well as contribute about $10 million to $12 million to 2011 EBITDA and roughly $25 million to $30 million to 2012 EBITDA.

Flowers is a Thomasville, Ga.-based producer and marketer of packaged bakery foods for retail and foodservice customers. Tasty is a Philadelphia-based baker of snack cakes, pies, cookies and donuts.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.