Flowers Foods plans sale of Tastykake business, sources say

• Tastykake could fetch around $350 million, doubling the $175 million Flowers paid for it in 2011
• The business accounts for roughly $400 million of Flowers Foods' $5.3 billion in annual sales, making snack cakes, pies, and donuts under brands like Krimpets and Kandy Kakes
• The sale follows industry consolidation trends, including J.M. Smucker's $5.6 billion acquisition of Hostess Brands in 2023 and Bain Capital's pursuit of a $3 billion-plus sale of Dessert Holdings

Flowers Foods Explores $350 Million Tastykake Sale

Flowers Foods is seeking to divest its Tastykake baked goods business for approximately $350 million, according to sources familiar with the matter. The company has engaged investment bank RBC to manage the sale process.

Key Financial Details:

• Tastykake valuation: ~$350 million
• Tastykake annual sales: ~$400 million
• Flowers Foods market cap: ~$1.5 billion
• Flowers Foods total 2023 sales: ~$5.3 billion
• Original Tastykake acquisition price (2011): $175 million

Strategic Context:

Flowers Foods, headquartered in Thomasville, Georgia, owns a portfolio including Wonder Bread and Simple Mills. The company is reshaping its portfolio by divesting legacy businesses while investing in higher-growth brands. Last year, Flowers acquired Simple Mills—which produces healthier crackers, bars, and baking mixes—for $795 million, signaling its strategic pivot toward premium, health-focused products.

Tastykake produces snack cakes, pies, and donuts under brands including Krimpets, Kandy Kakes, and Juniors. The business was a publicly traded company before Flowers purchased it for $175 million in 2011.

Industry Activity:

The potential sale aligns with broader M&A activity in the baked goods sector. Recent notable transactions include:

• J.M. Smucker's acquisition of Hostess Brands (Twinkies maker) for $5.6 billion in 2023
• Bain Capital-owned Dessert Holdings exploring a $3+ billion sale or IPO (as of February)
• Platinum Equity and Butterfly's acquisition of Rise Baking Company in 2024

The divestiture suggests continued consolidation and portfolio optimization within the packaged foods industry as companies balance legacy brands with evolving consumer preferences.