Flowers Foods Inc. on Wednesday announced that it has entered into a definitive agreement to acquire Simple Mills for $795 million in cash.
The Georgia-based maker of bakery products under the Wonder, Nature's Own, Dave's Killer Bread and other brands said that the deal would bolster the company's exposure to the "better-for-you" market, as well as attractive snacking segments.
Simple Mills, founded in 2012 by Katlin Smith, offers premium crackers, cookies, snack bars and baking mixes. Its products are available nationwide across more than 30,000 natural and conventional stores. The company posted estimated 2024 net sales of $240 million, up 14% compared to the prior year.
"We are incredibly excited to welcome the Simple Mills team to Flowers," said Flowers Chairman and CEO Ryals McMullian. "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."
The transaction is expected to close in the first quarter of the year, subject to customary regulatory approval and closing conditions. Once completed, Simple Mills will operate as an independent subsidiary of Flowers, and continue to be led by Smith and its current leadership.
"With Flowers' resources, we will be well positioned to broaden distribution, accelerate innovation, and amplify brand awareness, while advancing our mission," Smith said. "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."
