Flowers Foods Inc. has inked an agreement to acquire Simple Mills for $795 million in cash. Adding Simple Mills’ lines of better-for-you crackers, cookies, snack bars and baking mixes is expected to expand Flowers’ exposure in key snacking segments and enhance the company’s growth and margin prospects. Upon closing, Simple Mills will operate as an independent subsidiary of Flowers Foods and continue to be led by founder and CEO Katlin Smith and her leadership team. Simple Mills will maintain its operations in Chicago, Illinois and Mill Valley, California.
According to the companies, Simple Mills’ products have historically significantly outpaced category growth. Simple Mills is estimated to have generated 2024 net sales of $240 million, representing 14% growth compared to the prior year. Simple Mills will add to Flowers Foods Inc.’s position in the packaged bakery goods segment. The company had $5.1 billion in net sales in 2023 from its brands, which include Nature’s Own, Dave’s Killer Bread, Wonder and Tastykake.
“We are incredibly excited to welcome the Simple Mills team to Flowers,” said Ryals McMullian, chairman and CEO of Flowers Foods. “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.”
