Vestar Completes the Sale of Simple Mills
Rhea-AI Summary
Vestar Capital Partners has completed the sale of Simple Mills, a premium better-for-you food brand, to Flowers Foods (NYSE: FLO) for $795 million. Vestar, which provided the first institutional investment in October 2019, was Simple Mills' largest shareholder.
During Vestar's five-year investment period, Simple Mills achieved consistent double-digit topline growth through various initiatives including: expanded distribution channels, annual new product launches, increased marketing and R&D investments, and strengthened supply-chain operations through improved co-manufacturing and supplier networks.
The transaction validates Vestar's investment thesis centered on the growing better-for-you foods market segment. Simple Mills' product portfolio includes crackers, cookies, snack bars, and baking mixes. Piper Sandler and Centerview Partners acted as financial advisors, while Kirkland & Ellis LLP served as legal counsel to Vestar.
Positive
- Flowers Foods (FLO) acquires Simple Mills for $795 million enterprise value
- Simple Mills demonstrated consistent double-digit topline growth
- Successful expansion of distribution channels and annual product launches
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, FLO declined 0.21%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
"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 Vestar Managing Director Kevin Mundt, who also served as Chairman of the Board 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."
Over its five-year investment, Vestar, in collaboration with the Simple Mills leadership team, drove meaningful value creation across the Company. 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 Company's co-manufacturing and supplier network, among other accomplishments.
"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," said Dan O'Connell, Founder and CEO of Vestar. "We believe Flowers Foods is a great home for Simple Mills, and we look forward to watching the Company's continued success."
Piper Sandler and Centerview Partners served as the financial advisors and Kirkland & Ellis LLP served as legal counsel to Vestar on the transaction.
About Vestar Capital Partners
Vestar Capital Partners is a leading
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View original content:https://www.prnewswire.com/news-releases/vestar-completes-the-sale-of-simple-mills-302383002.html
SOURCE Vestar Capital Partners
FAQ
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