Vestar Capital Partners sold Simple Mills, a premium brand specializing in better-for-you snacks and baking mixes, to Flowers Foods for an enterprise value of $795m.

The deal marks the end of Vestar’s five-year investment in the company, during which it played a pivotal role in scaling the brand’s growth.

The New York-based private equity firm, which focuses on middle-market buyouts and growth investments, first backed Simple Mills in October 2019, becoming its largest shareholder. Under Vestar’s ownership, the company expanded its distribution, launched a major new product annually, invested in marketing and R&D, and strengthened its supply chain.

Vestar managing director Kevin Mundt highlighted that the sale validates the firm’s original investment thesis, which was based on the growing demand for better-for-you foods and the unique potential of Simple Mills. CEO Dan O’Connell emphasized Vestar’s history of partnering with founder-led businesses and expressed confidence in Flowers Foods as the right strategic home for the brand.

Since its inception in 1988, Vestar has invested over $12bn in 94 companies. Recent moves in its consumer portfolio include an investment in Roland Foods and the sale of Nonni’s Bakery to a Ferrero-related holding company. In April 2023, Vestar closed a $1.2bn single-asset continuation vehicle for its stake in market research firm Circana, with Blackstone Strategic Partners and HarbourVest Partners leading the investment.

Piper Sandler and Centerview Partners acted as financial advisors, while Kirkland & Ellis served as legal counsel to Vestar on the transaction.