Tasty Baking Company (NYSE: TBC – news) reported today on the results of its strategic planning analysis.
The Company’s Board of Directors today approved the recommendation of the Board’s special strategic planning committee that, at this time, it is in the best interests of the Company to pursue an active strategy to grow its business through distribution arrangements, national sales growth and appropriate joint venture arrangements, acquisitions and mergers, and remain an independent company. The Board reached this decision after engaging in an extensive strategic planning process over a period of 18 months, during which it explored a number of strategic options. During the past nine months, it was assisted in this process by a financial advisor of international standing and with recognized expertise in the food and baking industries.
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Carl Watts, Chairman and CEO of Tasty Baking Company said, “In making its recommendation, the Board of Directors recognized the evolving dynamics of the baking industry, which include continued consolidation. However, market and other conditions currently affecting the industry, and generally depressed earnings during the past two years throughout the industry, mitigate against our pursuing certain other strategic options at this time.”
Mr. Watts continued, “During the last nine months the Company has made significant progress in terms of increasing revenue, net income and overall efficiency. In planning for these improvements, we have increased our product offerings, aligned with strong national distributors as well as important retailers. These initiatives have helped the Company to grow well in excess of industry averages. The Company will also seek acquisition opportunities to further accelerate its growth.”
The Company also announced the appointment of a Human Resources Committee of the Board of Directors that will work closely with management on succession planning issues, with particular focus on recruiting a President/Chief Operating Officer. The Board also announced that in anticipation of the retirement of certain Board members, it intends to appoint at least two new outside directors within the next six months. The Board is currently comprised of eight directors, six of whom are outside directors.
Tasty Baking Company is one of the largest independent baking companies in the United States, and is the leading snack cake provider of the Mid-Atlantic region. The Company operates three bakeries in the Mid-Atlantic region, and distributes its products in 47 states under the Tastykake brand name.
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By GlobalDataExcept for historical information contained herein, the matters discussed are forward-looking statements (as such term is defined in the Securities Act of 1933, as amended) and because such statements include risks and uncertainties, actual results may differ materially from those forward-looking statements.
