In a strategic move to bolster its foothold in the snacks market, Flowers Foods has announced the acquisition of U.S. biscuit and snack-bar manufacturer Simple Mills for $795 million.
Flowers Foods, known for its iconic bread brands like Wonder and snack offerings such as TastyKake, has successfully negotiated the deal with Simple Mills’ founder Katlin Smith, the company’s management, and Vestar Capital Partners, its primary shareholder.
Simple Mills specializes in producing what Flowers Foods defines as “premium, better-for-you” snacks, including crackers, biscuits, and baking mixes. This acquisition enables Flowers Foods to tap into a rapidly growing health-conscious consumer segment.
The company enjoys a significant market presence, with products available in over 30,000 stores across the United States, generating annual sales of approximately $240 million in 2024—a notable 14% increase from the previous year, according to Flowers Foods.
Post-acquisition, Simple Mills will retain leadership under Smith and her management team, operating from its current headquarters in Chicago, Illinois, and Mill Valley, California.
This transaction awaits regulatory approval and compliance with closing conditions, with expectations to finalize by the first quarter of 2025.
The acquisition positions Flowers Foods to enhance its footprint in the better-for-you snack segment while addressing the growing consumer demand for healthier choices.
“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,” said Flowers Foods Chairman and CEO Ryals McMullian.
Additionally, the transaction is expected to strengthen Flowers Foods’ financial profile. The Canyon Bakehouse brand owner forecasts immediate growth in net sales along with improved adjusted EBITDA margins as a result of this acquisition.
Flowers Foods plans to leverage its resources to bolster distribution and enhance innovation for Simple Mills’ product lines.
In conclusion, Smith emphasizes that this transaction marks the beginning of a transformative growth phase for Simple Mills. “With Flowers’ resources, we will be well positioned to broaden distribution, accelerate innovation, and amplify brand awareness, while advancing our mission,” she said. “Flowers has a strong track record of fostering growth in its acquired companies while stewarding and protecting their brand promise.”
