Flowers Foods, Inc. has entered into a definitive agreement to acquire Simple Mills for $795 million in cash, with the goal of bolstering its growing position in better-for-you snacking categories.

Founded in 2012 by Katlin Smith, Simple Mills is a natural brand offering better-for-you crackers, cookies, snack bars and baking mixes. The brand's simple ingredients, pioneering use of nutrient-dense nut, seed and vegetable flours, have cultivated brand loyalty. Simple Mills products are available at more than 30,000 natural and conventional stores nationwide. Simple Mills is estimated to have generated 2024 net sales of $240 million, representing 14% growth compared to the prior year.

"We are incredibly excited to welcome the Simple Mills team to Flowers," says 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. Equally important, the brand's mission aligns with Flowers' values centered on honesty and integrity, respect and inclusion, and sustainability. Katlin and the Simple Mills team have built a remarkable business, and we look forward to collaborating with them to generate continued growth while preserving the brand's integrity and staying true to its unmatched quality and taste."

The companies note the acquisition will support future growth of the Simple Mills brand by expanding distribution, accelerating innovation, increasing velocities and gaining access to new segments and categories.

"This transaction marks the beginning of a new phase of growth for Simple Mills and we are thrilled to join the Flowers family,” Smith says. “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. 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, and I look forward to working alongside Flowers to build upon our strong history of growth."

The transaction is subject to customary regulatory approval and closing conditions and is anticipated to close in the first quarter of 2025. Upon closing, Simple Mills will operate as an independent subsidiary of Flowers Foods and continue to be led by Smith and her leadership team. Simple Mills will maintain its operations in Chicago, Illinois and Mill Valley, California.