Tasty Baking Company Completes the Sale of Its Former Bakery, Distribution Center & Corporate Offices
September 08 2010 - 5:00PM
Business Wire
Tasty Baking Company (NasdaqGM: TSTY) announced today that
pursuant to the terms of the Purchase and Sale Agreement with TKMG
Associates, L.P. and its guarantor, Metro Development Company, it
closed the sale of Tasty Baking Company’s former Philadelphia
bakery property located at 2801 Hunting Park Avenue and its former
corporate offices and distribution center located at 3413 Fox
Street for $6.0 million.
TKMG Associates, L.P. is a single purpose entity formed by Metro
Development Company, which is a private, Philadelphia company
specializing in the development of large-scale real estate projects
with leading national retailers. Metro Development Company has
developed more than five million square feet of retail space and
currently its affiliates own and manage approximately one million
square feet of retail space with more than two hundred tenant
leases under its management.
Charles P. Pizzi, president and chief executive officer of Tasty
Baking Company, said, “The closing of this transaction is a key
component in the completion of Tastykake’s operational transition
to the Philadelphia Navy Yard as the net cash proceeds from the
sale were used to reduce the debt associated with the investment in
our new manufacturing facility. As we officially close the chapter
of Tastykake’s history in Hunting Park, we are pleased that TKMG
Associates, L.P. anticipates developing the site into a retail
center to serve the surrounding area, create jobs and further
improve the overall quality of life in the community.”
Mr. Pizzi continued, “We are also pleased that TKMG Associates,
L.P. has committed to providing financial support – in addition to
the funding that Tasty Baking Company provides – to the Allegheny
West Foundation, an organization which diligently works to support
local residents and improve the community on a daily basis. This
commitment by TKMG Associates, L.P. to join Tastykake in its
support of Allegheny West truly makes the completion of this
transaction a win-win for everyone involved, including the local
community.”
ABOUT TASTY BAKING COMPANY
Tasty Baking Company (NasdaqGM: TSTY), founded in 1914 and
headquartered in Philadelphia, Pennsylvania, is one of the
country’s leading bakers of snack cakes, pies, cookies, and donuts
with manufacturing facilities in Philadelphia and Oxford,
Pennsylvania. Tasty Baking Company offers more than 100 products
under the Tastykake brand name. For more information on Tasty
Baking Company, visit www.tastykake.com. In addition, consumers can
send Tastykake products throughout the United States from the
company’s website or by calling 1-800-33-TASTY.
“Safe Harbor Statement” Under the Private Securities
Litigation Reform Act of 1995
Except for historical information contained herein, the matters
discussed herein are forward-looking statements (as such term is
defined in the Securities Act of 1933, as amended) that are subject
to risks and uncertainties that could cause actual results to
differ materially from those stated or implied herein. These
forward-looking statements may be identified by the use of words
such as "anticipate," "believe," "could," "estimate," "expect,"
"intend," "may," "plan," "predict," "project," "should," "would,"
"is likely to," or "is expected to" and other similar terms. There
are a number of factors that may cause actual results to differ
from these forward-looking statements, including, without
limitation, the costs to complete a new facility and relocate
thereto, the risks of business interruption and an adverse impact
on financial results while optimizing production at the new
facility, the risks of work stoppages associated with the
collective bargaining process, the costs and availability of
capital to fund improvements or new facilities, the success of
marketing and sales strategies and new product development, the
ability to enter new markets successfully, the price of raw
materials, and general economic and business conditions. Other
risks and uncertainties that may materially affect the company are
provided in the company’s annual report to shareholders and the
company’s periodic reports filed with the Securities and Exchange
Commission from time to time, including, without limitation,
reports on Forms 10-K and 10-Q. Please refer to these documents for
a more thorough description of these and other risk factors. There
can be no assurance that the estimated operating cash savings from
the company’s transition to the new manufacturing facility will be
realized. The company assumes no obligation to update publicly or
revise any forward-looking statements.
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