Flowers Adds Another Baker To Its Pantry

It's safe to say that the yeast in Flowers Foods' (FLO) long-term growth recipe has taken the form of mergers and acquisitions.

The baker and direct distributor of value-priced packaged breads, rolls and snack cakes across the U.S. says it's completed more than 100 acquisitions since going public in 1968. The company was founded by a pair of brothers in Thomasville, Ga., in 1919. Its brands include Nature's Own, Cobblestone Mill and Mrs. Freshley's. In 1996, Flowers added the Mi Casa brand of corn and flour tortillas to its lineup.

On May 25, Flowers announced it concluded a $175 million all-cash buyout of Tasty Baking Company, which makes snack cakes under the Tastykake brand. Tasty Baking posted $170 million in 2010 sales. It owns bakeries in Philadelphia and Oxford, Pa.

Snack cakes are a big deal in America. Flowers pegs that business at $4 billion a year. But Flowers says the Tasty buy gave it more than just baked sweets. Officials say the merger boosts the company's direct-store-delivery network to 61% of the U.S. population.

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