Flowers Foods To Acquire Simple Mills For $795 Million

Flowers Foods, Inc. announced today that it has entered into an agreement to acquire Simple Mills from company management, Vestar Capital Partners and initial angel investors for $795 million in a cash transaction. The deal is subject to customary regulatory approval and closing conditions and is expected to close in the first quarter of 2025.

Founded in 2012, Chicago-based Simple Mills markets a range of premium cookies, crackers, snack bars and baking mixes crafted with nut, seed and vegetable flours. The brand’s products are available nationwide in more than 30,000 natural and conventional stores. The company generated estimated $240 million in net sales in 2024, up 14% over the prior year.

Upon closing of the transaction, Simple Mills will operate as an independent subsidiary of Flowers Foods, based in Chicago and Mill Valley, Calif., and led by founder and CEO Katlin Smith and the existing leadership team.

“With Flowers’ resources, we will be well positioned to broaden distribution, accelerate innovation, and amplify brand awareness, while advancing our mission. Flowers has a strong track record of fostering growth in its acquired companies while stewarding and protecting their brand promise. I cannot imagine a better partner for Simple Mills and the team, and I look forward to working alongside Flowers to build upon our strong history of growth,” Smith said in a statement.

Headquartered in Thomasville, Ga., Flowers Foods produces a broad portfolio of bread and sweet baked goods under brands including Nature’s Own, Dave’s Killer Bread, Wonder, Canyon Bakehouse and Tastykake. The acquisition adds a better-for-you snacking platform and increases Flowers’ branded retail sales as a percentage of total net sales.

Flowers Foods’ snacking strategy has been taking shape over the past two years behind the launch of Dave’s Killer Bread Organic Snack Bars and investment in Base Culture.

“With leading market positions and abundant white space for future growth, Simple Mills perfectly fits our strategy of adding compelling brands in better-for-you segments that complement and diversify our existing portfolio. Equally important, the brand’s mission aligns with Flowers’ values centered on honesty and integrity, respect and inclusion, and sustainability,” said Ryals McMullian, chairman and CEO of Flowers Foods, in a statement.

Flowers expects the acquisition to be immediately accretive to net sales and accretive to earnings per share in 2026. In the company’s third quarter ended Oct. 5, 2024, net sales decreased 0.7% to $1.19 billion, as positive pricing offset volume declines, and adjusted EBITDA grew 10% to $133.3 million.

RBC Capital Markets LLC advised Flowers Foods in the transaction, and Piper Sandler and Centerview Partners advised Simple Mills.