Vestar Capital Partners has completed the sale of Simple Mills, a better-for-you snack brand, to publicly traded Flowers Foods for $795 million in cash.
Simple Mills produces co-manufactured products including crackers, cookies, snack bars, and baking mixes, with a particular focus on gluten-free, grain-free, and minimally processed foods. The company’s popular product lines include Almond Flour Crackers, Soft Baked Cookies, and Pancake & Waffle Mixes, which are often favored by individuals following paleo, vegan, or gluten-free diets.
Headquartered in Chicago, with additional operations in Mill Valley, California, Simple Mills was founded in 2012 by Katlin Smith, who was driven by a desire to create healthier, whole-food alternatives. Vestar first invested in Simple Mills in October 2019.
During Vestar’s ownership, Simple Mills experienced consistent double-digit topline growth through expanded distribution channels, new product launches (at least one major release per year), and investments in marketing, research, and development. The company’s net sales grew from $105 million in 2020 to $240 million in 2024.
According to Simple Mills, the company has disrupted center-aisle grocery categories to become the leading cracker, cookie, and baking mix brand in the natural channel, as well as the leading natural cracker brand in MULO (Multi-Outlet), which refers to a retail sales channel that includes supermarkets, drugstores, mass merchandisers (such as Walmart or Target), club stores (like Costco), and dollar stores. The company’s products are now available in over 30,000 stores nationwide.
“This positive outcome validates Vestar’s original investment thesis, including the ongoing shift toward better-for-you foods, as well as our strong conviction in what we believed to be the unique potential of the Simple Mills brand,” said Kevin Mundt, a managing director at Vestar and former chairman of Simple Mills. “Vestar was proud to partner with the skilled Simple Mills management team, who have a pulse on what consumers want, to improve the strategic positioning of the brand and help the company realize consistent double-digit topline growth throughout our investment. We wish Simple Mills well as it embarks on its next chapter.”
Flowers Foods (NYSE: FLO), based in Thomasville, Georgia, is a maker of packaged bakery goods under well-known brands such as Nature’s Own, Dave’s Killer Bread, Wonder Bread, and Canyon Bakehouse. Founded in 1919 by William Howard Flowers, the company reported net sales of $5.1 billion in 2024.
“Simple Mills is another example of Vestar’s long-time approach partnering with founder-owned businesses,” said Dan O’Connell, founder and CEO of Vestar. He noted that the firm’s objective was to position companies for long-term growth while generating attractive returns for management partners and limited partners, adding that Flowers Foods represents a strong platform for Simple Mills’ future growth.
Headquartered in New York City, Vestar Capital Partners specializes in minority and control management buyouts and growth capital investments in the consumer, business and technology services, and healthcare sectors. Since its founding in 1988, the firm has completed more than 94 platform investments and over 200 add-on acquisitions, with a total transaction value exceeding $61 billion.
Piper Sandler and Centerview Partners served as financial advisors to Simple Mills on this transaction.
© 2025 Private Equity Professional | February 25, 2025
