Flowers Foods Seeks to Sell Tastykake for $350 Million

Flowers Foods Inc. is seeking to divest its Tastykake baked goods business, which produces snack cakes, pies, and donuts under brands such as Krimpets, Kandy Kakes, and Juniors. The company has engaged investment bank RBC to manage the sale process, with sources estimating the value of Tastykake at approximately $350 million.

Tastykake currently generates about $400 million in annual sales for Flowers Foods. The divestiture is part of a broader strategic shift to prioritize higher-growth assets. This follows the company's $795 million acquisition of Simple Mills last year, signaling a move away from traditional baked goods that no longer align with its long-term goals.

The potential sale comes during a period of significant consolidation within the baked goods sector. This trend is highlighted by other major industry moves, including the recent purchase of Hostess Brands by J.M. Smucker.