Flowers Foods, Inc. (NYSE: FLO), one of the largest producers of packaged bakery foods in the United States, has announced its acquisition of Simple Mills for $795 million in cash. This strategic move aims to bolster Flowers Foods' growth prospects, diversify its revenue base, and strengthen its financial profile. The acquisition is expected to be immediately accretive to net sales and adjusted EBITDA growth and margins on a proforma basis, as well as accretive to Flowers' earnings per share in 2026.

Simple Mills, founded in 2012 by Katlin Smith, is a market-leading natural brand offering premium better-for-you crackers, cookies, snack bars, and baking mixes. The brand's stunningly simple ingredients, pioneering use of nutrient-dense nut, seed, and vegetable flours, and exceptional taste have cultivated unmatched brand love and loyalty among natural and mainstream consumers alike. Simple Mills products are available nationwide across more than 30,000 natural and conventional stores, with estimated 2024 net sales of $240 million, representing 14% growth compared to the prior year.

The acquisition of Simple Mills aligns with Flowers Foods' long-term strategy of adding compelling brands in better-for-you segments that complement and diversify its existing portfolio. Ryals McMullian, chairman and CEO of Flowers Foods, stated, "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 Smith, founder and CEO of Simple Mills, commented, "This transaction marks the beginning of a new phase of growth for Simple Mills and we are thrilled to join the Flowers family. 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."

The acquisition is expected to enhance Flowers Foods' growth prospects by adding a scaled, better-for-you snacking platform that is successfully penetrating mainstream consumers and offers significant white space for future growth. It will also diversify category exposure, bolstering Flowers Foods' growing position in better-for-you and attractive snacking categories through the addition of Simple Mills' market-leading products, which are meaningfully outpacing category growth. Additionally, the acquisition is expected to be immediately accretive to net sales and adjusted EBITDA growth and margins on a proforma basis, as well as accretive to Flowers' earnings per share in 2026.




In conclusion, Flowers Foods' acquisition of Simple Mills is a strategic move that aligns with the company's long-term growth strategy. By adding a leading better-for-you snack brand to its portfolio, Flowers Foods is well-positioned to capitalize on the growing demand for healthier and more sustainable snack options, ultimately driving growth and strengthening its financial profile.