Vestar Completes the Sale of Simple Mills

Whats Happening:

Vestar Capital Partners has completed the sale of Simple Mills, a premium brand of better-for-you food products, to Flowers Foods, Inc. for $795 million. Vestar provided the first institutional investment in Simple Mills in October 2019 and was the company's largest shareholder. Under Vestar's ownership, Simple Mills expanded its distribution channels, launched new products, invested in marketing and R&D, and strengthened its supply chain.

Key Moves:

• Vestar Capital Partners sells Simple Mills to Flowers Foods for $795 million

• Simple Mills expanded distribution channels and launched new products under Vestar's ownership

• The company invested in marketing, R&D, and strengthened its supply chain

By The Numbers:

• Total enterprise value of the sale: $795 million

• Vestar's investment period: 5 years (October 2019 to February 2025)

• Simple Mills launched one major new product per year under Vestar's ownership

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," said Vestar Managing Director Kevin Mundt.

• "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," said Dan O'Connell, Founder and CEO of Vestar.

Bottom Line:

Vestar Capital Partners' successful exit from Simple Mills demonstrates the fund's ability to create value in the better-for-you food sector. The sale validates Vestar's investment thesis and showcases its approach to partnering with founder-owned businesses to drive growth and profitability. This transaction positions Simple Mills for continued success under new ownership while generating returns for Vestar's investors.

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