Tasty Baking Co., which is currently moving into a state-of-the-art facility in the Philadelphia Navy Yard, has found a buyer for its former bakery, distribution center and corporate offices on Hunting Park Ave.
The pending $6 million sale will allow the Philadelphia-based snack cake and sweet goods producer to use the cash to reduce the debt associated with the investment in its new manufacturing facility, says Charles Pizzi, the company’s president and chief executive officer.
Tasty Baking signed an agreement with TKMG Associates, L.P. and its guarantor, Metro Development Co., to purchase the old bakery, pending due diligence and other customary changes. TKMG Associates is a single purpose entity formed by Metro Development, which is a private, Philadelphia business that specializes in the development of large-scale real estate projects with national retailers.
Unloading the old bakery has been one of the final unresolved pieces in Tasty Baking’s transition to its new headquarters. The pending sale allows the company to focus on its future, Pizzi notes.
"Completing the transition into our new bakery at the Philadelphia Navy Yard will truly be a significant and transformative event for Tasty Baking as the new bakery is expected to increase production flexibility and provide the company with $13-15 million per year in pre-tax cash savings net of leases, but before debt service,” Pizzi says. “As a company, we are intently focused on completing this project while at the same time carefully managing the day to day needs of our business."
Tasty Finds Buyer for its Old Bakery
April 6, 2010