Bakery company Flowers Foods Inc is to buy Tasty Baking Co for $34.4 million in a cash deal that boosts its presence in the mid-Atlantic region and bails out the debt-laden maker of Tastykakes. Flowers Foods, which makes Nature's Own bread, will pay $4 a share, a premium of 148 percent to Tasty Baking's closing share price on Friday. "By our math, Flowers paid roughly 7-8 times 2011 estimated EBITDA for Tasty, which is in line with previous deals in the baked foods space," SunTrust Robinson Humphrey analyst William Chappell wrote in a client note. Deals in the snack food sector over the past year include the acquisition of Pringles by Diamond Foods from P&G and the merger of Lance Inc with privately held peer Snyder's of Hanover Inc.
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