#USA #New York #Simple Mills #Flowers Foods #Vestar Capital

Vestar Capital Partners Sells Simple Mills

Vestar Capital Partners, a renowned mid-market private equity firm based in the U.S., has officially completed the sale of Simple Mills. This brand is recognized for its high-quality crackers, cookies, snack bars, and baking mixes, specializing in healthier food options. The sale to Flowers Foods, Inc., which is publicly traded on the NYSE under the ticker symbol FLO, totals an impressive enterprise value of $795 million.

Kevin Mundt, Managing Director at Vestar, who also held the position of Chairman on Simple Mills' board, articulates this development as a validation of Vestar's original investment hypothesis. Their investment in Simple Mills began in October 2019, marking their first institutional commitment to the brand. Mundt expressed pride in assisting Simple Mills' management team in aligning the brand with evolving consumer preferences toward healthier food choices. Under Vestar's stewardship, the company experienced significant growth in its topline revenue, consistently achieving double-digit growth.

In the five years since Vestar's investment, Simple Mills has witnessed notable enhancements across various facets of its operations. Together with the leadership at Simple Mills, Vestar facilitated strategic advancements that enhanced distribution and promoted product innovation, unveiling at least one major new product annually. Beyond product development, Vestar also invested in marketing efforts and research and development, while fortifying the company’s supply chain through the establishment of robust partnerships with co-manufacturers and suppliers.

Dan O'Connell, Founder and CEO of Vestar, showcased the sale as a quintessential example of the firm’s long-standing philosophy of collaborating with founder-led companies. O’Connell emphasized that the endeavor aimed to drive both growth and profitability for the businesses under their management, all while setting the stage for future success. He expressed confidence that Flowers Foods would provide an excellent environment for Simple Mills as it embarks upon this new chapter.

Additionally, Vestar enlisted Piper Sandler and Centerview Partners as financial advisors and Kirkland Ellis LLP as legal counsel during this transactional process, positioning them well to manage the complexities of such a significant sale.

Vestar's Legacy in Investments

Since its inception in 1988, Vestar Capital Partners has carved a niche in the U.S. private equity landscape, focusing on management buyouts and growth capital investments. Over the decades, Vestar has invested more than $12 billion across 94 companies while facilitating over 200 add-on acquisitions. With a cumulative enterprise value around $61 billion, the firm seeks to grow the companies it invests in by providing guidance and resources needed for sustainable development. Vestar’s approach has consistently revolved around nurturing lasting partnerships with businesses looking to thrive in competitive markets.

Looking Ahead

As Simple Mills steps into a new era under Flowers Foods, the market awaits the brand’s forthcoming product innovations and strategic growth opportunities. Vestar's investment has not only proven lucrative but has also influenced the trajectory of a brand that aligns with the growing demand for nutritious snack alternatives. Industry observers are keen to see how Simple Mills will continue to adapt and excel in the ever-evolving food landscape, leveraging the resources and networks that Flowers Foods brings to the table.

Vestar prepares to celebrate the achievements accomplished during its leadership with Simple Mills while looking toward new investments that continue to shape the future of consumer goods. This win underscores the importance of recognizing changing consumer preferences and responding effectively with innovative and quality product offerings.