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Simple Mills Acquired by Flowers Foods in $795 Million Deal

Prime Highlights:

Simple Mills, a woman-led food startup, will be acquired by Flowers Foods for $795 million in an all-cash transaction.

Founded by Katlin Smith in 2012, the company has become a national leader in the better-for-you food category.

Key Background:

Simple Mills, the Chicago-based food startup known for its gluten-free crackers, cookies, snack bars, and baking mixes, will be acquired by Flowers Foods Inc. in an all-cash deal valued at $795 million. Flowers Foods, one of the largest producers of packaged bakery products in the United States, announced the acquisition on January 8, 2025, as part of its strategy to diversify and expand its product offerings.

Founded by Katlin Smith in 2012, Simple Mills originally launched with a focus on better-for-you baking mixes, and quickly gained traction within the natural food market. Over the years, the brand has expanded its product line to include gluten-free crackers, cookies, snack bars, and more, positioning itself as a leader in the growing natural and healthy snacks sector.

This acquisition marks a significant milestone for Simple Mills, which first gained attention after winning the UChicago New Venture Challenge in 2014. The company’s success has been attributed to its focus on innovation, sustainability, and providing consumers with nutritious, delicious alternatives to traditional snack foods. Hyde Park Angels, an early investor in Simple Mills, called the acquisition a major achievement for the Chicago startup ecosystem, praising the company’s ability to scale nationally while maintaining a purpose-driven approach.

According to market research, the gluten-free confectionery market is projected to reach $6.6 billion by 2032, reflecting the increasing consumer demand for healthier, more sustainable food options. Simple Mills’ continued growth and market presence have positioned it well to capitalize on this trend.

Post-acquisition, Simple Mills will retain its headquarters in Chicago and operations in Mill Valley, California. The current leadership team, including founder Katlin Smith, will remain in place, and Simple Mills will continue to operate as an independent subsidiary of Flowers Foods. The transaction is expected to close in the first quarter of 2025.