Packaged bakery foods manufacturer Flowers Foods has agreed to acquire Simple Mills, a provider of crackers, cookies, snack bars, and baking mixes, for $795m in cash.
This acquisition of Simple Mills boosts Flowers Foods’ presence in the growing ‘better-for-you’ snack market. It enhances the company’s growth potential and profit margins.
Simple Mills, founded in 2012, offers natural, better-for-you foods. Its products are made with simple, nutrient-dense ingredients like nuts, seeds, and vegetable flours.
These offerings are available in over 30,000 stores across the US. In 2024, Simple Mills is projected to reach $240m in net sales, marking a 14% growth from the previous year.
Flowers Foods chairman and CEO Ryals McMullian said: “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 centred on honesty and integrity, respect and inclusion, and sustainability.”
The acquisition of Simple Mills offers several benefits for Flowers Foods. It enhances growth prospects by adding a better-for-you snacking platform, led by a management team, with significant room for expansion.
The deal enables the baking products maker to grow further through expanded distribution, innovation, and entry into new segments.
Flowers’ track record in growing acquired brands in the better-for-you space strengthens this opportunity.
Additionally, the acquisition diversifies packaged bakery foods manufacturer’s category exposure, bolstering its position in the growing better-for-you and snacking markets.
Simple Mills’ strong brand provides opportunities for expansion across multiple snacking categories, increasing Flowers’ branded retail sales.
Simple Mills founder and CEO Katlin Smith said: “This transaction marks the beginning of a new phase of growth for Simple Mills and we are thrilled to join the Flowers family. I am extremely proud of our talented team and the strong brand we’ve built with the support of our valued partners and loyal customers.
“With Flowers’ resources, we will be well positioned to broaden distribution, accelerate innovation, and amplify brand awareness, while advancing our mission.”
Upon closing of the acquisition, Simple Mills will become an independent subsidiary of Flowers Foods.
It will continue to be led by Smith and her team. Simple Mills will maintain operations in Chicago, Illinois, and Mill Valley, California.
The transaction is subject to regulatory approvals and customary closing conditions, with the acquisition expected to close in Q1 2025.
