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Vestar Completes the Sale of Simple Mills

1. Simple Mills sold to FLO for a $795M enterprise value. The deal reinforces healthy food trends impacting FLO. 2. Vestar Capital exited its largest investment after five years. The transaction validates the growth thesis behind Simple Mills. 3. Simple Mills showed consistent double-digit topline growth under Vestar's guidance. FLO now inherits a robust better‐for‐you brand. 4. The acquisition involved significant investments in marketing, R&D, and supply chain. These moves support FLO's strategic diversification and long-term growth.

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Why Bullish?

The acquisition is bullish for FLO as it adds a premium, fast-growing brand to its portfolio. Historically, similar strategic add-on acquisitions in the food industry have led to enhanced revenue diversification and improved investor sentiment.

How important is it?

This acquisition enhances FLO's product mix and positions it to capture the growing healthy food market. While integration challenges may arise, the strategic rationale suggests a positive impact on FLO's competitive positioning and long-term stock performance.

Why Long Term?

The integration and ramp-up of Simple Mills’ growth drivers typically benefit FLO over the long term. Past examples in the food sector show that brand integration and portfolio diversification yield sustained benefits after initial adjustments.

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, /PRNewswire/ -- Vestar Capital Partners, a leading U.S. middle-market private equity firm, announced today it has completed the sale of Simple Mills (or "the Company"), a premium brand of better-for-you crackers, cookies, snack bars, and baking mixes, to Flowers Foods, Inc. (NYSE: FLO) for a total enterprise value of $795 million. Vestar provided the first institutional investment into the brand in October 2019, and was the Company's largest shareholder. "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 PartnersVestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests in and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Business & Technology Services and Healthcare. Since inception in 1988, Vestar funds have invested over $12 billion in 94 companies – as well as more than 200 add-on acquisitions – with a total value of approximately $61 billion. For more information on Vestar, please visit www.vestarcapital.com. Media Contacts: Lambert by LLYCJennifer Hurson845.507.0571[email protected]orCaroline Luz203.570.6462[email protected] SOURCE Vestar Capital Partners WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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