I really do have a life so I haven't been blogging much this week. One of the things I see that is occurring is Flowers Foods, Inc. (NYSE: FLO)(“Flowers”) and Tasty Baking Company (NasdaqGM: TSTY) (“Tasty”) announced on April 21 that Flowers’ direct wholly-owned subsidiary, Compass Merger Sub, Inc., has commenced its tender offer for all outstanding shares of common stock of Tasty at a price of $4.00 per share, net to the seller in cash, without interest and less any required withholding taxes.
Tasty’s board of directors has unanimously determined that the Agreement and Plan of Merger and tender offer are in the best interests of Tasty’s shareholders. Tasty’s board of directors also recommends that shareholders of Tasty tender their shares pursuant to the tender offer. The tender offer is scheduled to expire at midnight Philadelphia, PA time on May 19,
Flowers Foods was founded in 1919 and headquartered in Thomasville, Ga., Flowers Foods, with $2.6 billion in annual sales, is one of the nation’s leading producers and marketers of packaged bakery foods for retail and foodservice customers. Among the company’s top brands are Nature’s Own, Whitewheat, Cobblestone Mill, Blue Bird, and Mrs. Freshley’s. Flowers operates 39 bakeries that are among the most efficient in the baking industry. Flowers Foods produces, markets, and distributes fresh bakery products that are delivered to customers daily through a direct-store-delivery system serving the Southeast, Mid-Atlantic, and Southwest as well as select markets in California and Nevada. The company also produces and distributes fresh snack cakes and frozen breads and rolls nationally through warehouse distribution.
Even tho Tastykakes have suffered in the last few years this is a step down for them. Tasty Bakery is trading today at $3.98 down from their 52 week high of $7.90. With an EPS of -5.56 you can't expect much more.