Flowers Foods, Inc. announced today its agreement to acquire Simple Mills, a leading better-for-you snack brand, for $795 million in cash. The deal marks a significant milestone for the woman-led startup that has revolutionized the natural foods sector since its founding in 2012.
Growth Success highlights Simple Mills’ market position. The company generated approximately $240 million in net sales in 2024, achieving 14% year-over-year growth. With distribution in over 30,000 stores nationwide, Simple Mills leads the natural channel in crackers, cookies, and baking mixes.
Strategic Vision drives the acquisition. Bizjournals reports that Simple Mills will operate as an independent subsidiary, with founder and CEO Katlin Smith maintaining leadership alongside her existing team. Operations will continue in both Chicago, Illinois, and Mill Valley, California.
Financial Framework shapes the deal structure:
- All-cash transaction valued at $795 million
- Funding through term loan from Royal Bank of Canada
- Expected closing in Q1 2025, pending regulatory approval
Market Impact extends beyond the immediate transaction. The acquisition will increase Flowers Foods’ branded retail sales to approximately 66% of total net sales, strengthening its position in the premium snacking segment.
Future Growth potential remains strong. Simple Mills’ focus on nutritious ingredients and category innovation aligns with growing consumer demand for better-for-you options, while Flowers Foods’ resources and distribution network promise accelerated expansion.
This acquisition represents a significant shift in the natural foods industry, combining Simple Mills’ innovation with Flowers Foods’ established market presence.
