Flowers Foods to acquire Simple Mills for $795M in cash

Flowers Foods (FLO) announced that it has entered into a definitive agreement to acquire Simple Mills for $795M in cash. The addition of Simple Mills expands Flowers’ exposure to better-for-you and attractive snacking segments and enhances the company’s growth and margin prospects. Founded in 2012 by Katlin Smith, Simple Mills is a market-leading natural brand offering premium better-for-you crackers, cookies, snack bars, and baking mixes. The deal is expected to be immediately accretive to net sales and adjusted EBITDA growth and adjusted EBITDA margins on a proforma basis. It is expected to be accretive to Flowers’ earnings per share in 2026. The transaction is subject to customary regulatory approval and closing conditions and is anticipated to close in the first quarter of 2025. Upon closing, Simple Mills will operate as an independent subsidiary of Flowers Foods and continue to be led by founder and CEO Katlin Smith and her leadership team. Simple Mills will maintain its operations in Chicago, Illinois and Mill Valley, California.