Flowers Foods to Acquire Simple Mills for $795 Million
Chicago-Based Snacks Maker to Operate as Independent Subsidiary
Flowers Foods, owner of bakery brands such as Dave’s Killer Bread, Wonder and Nature’s Own, has agreed to buy Chicago-based gluten-free snacks and baking mix maker Simple Mills for $795 million in cash, the companies announced on Wednesday.
About Simple Mills
Simple Mills’ products are available nationwide in more than 30,000 natural and conventional stores. Items include cocoa and cashew butter cookies; almond-flour pancake and pizza dough mix; crackers made of sunflower, flax, and pumpkin seeds; pita chips with sweet potato and parsnip flour, and more.
Financial Performance
The company generated net sales of $240 million in 2024, a 14% increase compared to the prior year, according to Simple Mills. The acquisition is expected to close in the first quarter, pending regulatory approval.
Leadership and Operations
Simple Mills will operate as an independent subsidiary of Flowers Foods and will continue to be led by founder and CEO Katlin Smith and its current management, according to a news release. It will maintain operations in Chicago, as well as Mill Valley, California, where Smith is based. More than half of the company’s 111 employees are based in Chicago, with offices at 435 N. LaSalle St.
Founder’s Background
Smith attended the University of Chicago’s Booth School of Business, where she won an award from the university’s New Venture Challenge accelerator program in 2014. She began her career as a management consultant at Deloitte and later started having medical issues, which led her to develop a passion for natural foods. She started experimenting with almond flour and other natural ingredients in a test kitchen and eventually launched Simple Mills in 2012.
Flowers Foods’ Acquisition Strategy
Flowers Foods, one of the country’s largest producers of packaged bakery foods, is a publicly-listed company based in Georgia and earned net sales of $5.1 billion in 2023. The company is acquiring Simple Mills to expand its offerings of healthier foods, with a focus on better-for-you segments that complement and diversify its existing portfolio.
Global Gluten-Free Market
The global market for gluten-free products is projected to grow from $7.7 billion in 2024 to $11.48 billion by 2029, according to a report from management consulting firm MarketsandMarkets. Many consumers are adopting gluten-free diets due to perceived health benefits, such as better digestion and increased energy levels.
Conclusion
The acquisition of Simple Mills by Flowers Foods is a strategic move to expand the company’s offerings of healthier foods, while also providing Simple Mills with the resources to broaden its distribution, accelerate innovation, and amplify brand awareness.
FAQs
* What is the acquisition price of Simple Mills by Flowers Foods?
+ The acquisition price is $795 million in cash.
* What is the expected closing date of the acquisition?
+ The acquisition is expected to close in the first quarter, pending regulatory approval.
* How many employees does Simple Mills have?
+ Simple Mills has 111 employees, with more than half based in Chicago.
* What is the global market size for gluten-free products?
+ The global market size for gluten-free products is projected to grow from $7.7 billion in 2024 to $11.48 billion by 2029.
