Flowers Foods Inc. has completed the acquisition of Simple Mills from Vestar Capital Partners, a U.S. middle-market private equity firm. The proposed acquisition, which had a total enterprise value of $795 million, was first announced in January and completed on February 21. Vestar was the company’s largest shareholder and provided the first institutional investment in October 2019.
Simple Mills offers better-for-you crackers, cookies, snack bars and baking mixes. Under Vestar’s ownership, Simple Mills expanded its distribution channels, supported product innovation, including launching one major new product per year, invested in marketing and R&D, and strengthened its supply chain via solidifying the company’s co-manufacturing and supplier network, according to the company.
What they are saying
“The addition of Simple Mills to our brand portfolio increases our presence in better-for-you and attractive snacking segments, diversifies our category exposure, and enhances our growth and margin prospects,” said Ryals McMullian, chairman and CEO of Flowers Foods in a press release. “We look forward to supporting the Simple Mills team as they embark on a new phase of growth by broadening distribution, accelerating innovation, and amplifying brand awareness, while advancing their mission.”
“This positive outcome validates Vestar’s original investment thesis, including the ongoing shift toward better-for-you foods, as well as our strong conviction in what we believed to be the unique potential of the Simple Mills brand,” said Vestar managing director Kevin Mundt, who also served as chairman of the board of Simple Mills, in a press release. “Vestar was proud to partner with the skilled Simple Mills management team, who have a pulse on what consumers want, to improve the strategic positioning of the brand and help the company realize consistent double-digit topline growth throughout our investment. We wish Simple Mills well as it embarks on its next chapter.”
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Linda Becker | Editor-in-Chief
Linda Becker is editor-in-chief of Automatic Merchandiser and VendingMarketWatch.com. She has more than 20 years of experience in B2B publishing, writing, editing and producing content for magazines, websites, webinars, podcasts, newsletters and eBooks, primarily for manufacturing and process engineering audiences. Since joining Automatic Merchandiser and VendingMarketWatch.com, Linda has developed a new appreciation for the convenience services industry and the essential role it plays. She is dedicated to serving readers by covering the latest news in the vending, office coffee service and micro market industry. She can be reached at 262-203-9924 or [email protected].
