Tastykake is merging with a southern baker in a move that will likely save Philadelphia food icon.
Georgia-based Flowers Food has agreed to buy Tasty Baking Company for a reported.
The two companies announced the merger agreement early Monday morning, according to a press release.
In the merger agreement, Flowers will acquire all of the outstanding shares for Tastykakes common stock for $4 per share plus fork over $34-million cash -- totaling about $165 million.
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Flowers Foods will be taking on Tasty's existing debt -- meaning that Tastykakes will likely continue to be produced.
Tasty's president and CEO Charles P. Pizzi released the following statement:
"This merger with Flowers will create value for Tasty's shareholders, employees, and the Philadelphia community... Flowers also shares Tasty's commitment to the communities in which it operates. We have a deep respect for Flowers' approach to managing its business and employees, and we look forward to working closely with the Flowers team to complete the merger as quickly as possible and to ensure a smooth transition,"
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