Vestar Capital Partners, a leading U.S. middle-market private equity firm, announced today that it has completed the sale of Simple Mills, a premium brand of better-for-you crackers, cookies, snack bars, and baking mixes, to Flowers Foods for a total enterprise value of $795 million. Vestar provided the first institutional investment in the brand in October 2019 and was Simple Mills’ largest shareholder.
During its five-year investment, Vestar, in collaboration with the Simple Mills leadership team, drove meaningful value creation across the company. And under Vestar’s ownership, Simple Mills expanded its distribution channels; supported new product innovation, including launching one major new product per year; invested meaningfully in marketing and R&D; and strengthened its supply-chain via solidifying the Simple Mills’ co-manufacturing and supplier network, among other accomplishments.
Piper Sandler and Centerview Partners served as the financial advisors and Kirkland & Ellis served as legal counsel to Vestar on the transaction.
KEY QUOTES:
“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. 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.”
– Vestar Managing Director Kevin Mundt, who also served as Chairman of the Board of Simple Mills
“Simple Mills is another example of Vestar’s long-time approach partnering with founder-owned businesses. Our aim is to steer our companies’ growth and profitability positioning them for a strong future, while also generating an attractive realization for our management partners and Limited Partners. We believe Flowers Foods is a great home for Simple Mills, and we look forward to watching the Company’s continued success.”
– Dan O’Connell, Founder and CEO of Vestar
