#United States #Snacks #Simple Mills #Better-for-you #Thomasville

Flowers Foods to Acquire Simple Mills

Flowers Foods, Inc., a leading player in the packaged bakery food sector, has confirmed a definitive agreement to purchase Simple Mills for a notable $795 million in cash. This strategic move opens up exciting opportunities for revenue diversification and growth, particularly in the burgeoning better-for-you snack market.

Founded in 2012, Simple Mills has rapidly emerged as a premium brand known for its range of healthy snacks, including crackers, cookies, snack bars, and baking mixes. With a philosophy centered on using high-quality, simple ingredients, Simple Mills has captured the hearts of health-conscious consumers, posting impressive annual sales. The brand is projected to record net sales of approximately $240 million for 2024, marking a robust 14% growth from the previous year.

Enhancing Growth Potential

This acquisition is set to enhance Flowers' growth prospects by expanding its portfolio to include Simple Mills’ well-regarded product line, which currently surpasses category growth rates in the natural snack market. Flowers Foods' CEO, Ryals McMullian, expressed enthusiasm for the merger, highlighting that Simple Mills fits perfectly into their strategy to add compelling brands in the better-for-you sectors that are in high demand.

The focus will be on leveraging Simple Mills’ existing strengths to further penetrate mainstream markets, providing ample white space for future innovations and growth. Katlin Smith, the founder and CEO of Simple Mills, echoed this sentiment, indicating her eagerness to join forces with Flowers to accelerate their mission to transform food production in a way that benefits both consumers and the planet.

Financial Implications

Expected to be immediately accretive to net sales and adjusted EBITDA growth, this acquisition is projected to boost Flowers' earnings per share as early as 2026. Furthermore, the transaction stands to enhance Flowers' exposure to attractive snacking segments, diversifying its category landscape and solidifying its market position.

With regulators' approval, Simple Mills will operate as an independent subsidiary under the Flowers umbrella, maintaining its leadership team and operational bases in Chicago and Mill Valley, California.

Looking Ahead

The partnership with Simple Mills presents an exciting new chapter for Flowers Foods, as it aims to capitalize on the growing consumer demand for healthier snack options. As lifestyles continue to shift towards wellness and nutrition, brands that resonate with these values are likely to thrive.

In conclusion, the acquisition signifies not just an expansion for Flowers Foods, but a significant movement towards promoting healthier eating habits across the nation. As the company prepares for a live conference call to discuss the transaction in greater detail, industry stakeholders are keenly watching how this union will unfold and contribute to the evolving snack landscape.

About Flowers Foods, Inc.
Headquartered in Thomasville, Georgia, Flowers Foods has a storied history as one of the largest producers of packaged bakery foods in the United States. With 2023 net sales reported at $5.1 billion, the company produces a wide array of bakery products under various brands, aiming to deliver quality and innovation in every bite.

For more information about the acquisition and Flowers Foods’ extensive portfolio, you can visit www.flowersfoods.com.