Borden Dairy Gets Picked Up by Private Equity Firm
Borden will be acquired by Capitol Peak Partners, a private equity firm founded by former WhiteWave chairman Gregg Engles, as part of a $340 million sale.
Capitol Peak will assume majority ownership of the new company, while investment firm KKR will become a minority investor. A new board of directors will be established upon the deal’s close, expected to occur in mid-July.
The dairy company filed for Chapter 11 bankruptcy protection in January, impacted by the rising cost of raw milk and other market challenges.
Borden CEO Tony Sarsam noted that the dairy company has generated positive cash flow, grown its customer footprint and maintained an uninterrupted supply chain during the coronavirus health crisis. “We are exiting Chapter 11 as a thriving company that is meeting and exceeding its performance forecasts, making our outlook very promising.”
Headquartered in Dallas, Borden operates 12 milk processing plants and almost 100 branches in the U.S., employing about 3,300 employees, all of whom will continue to be employed after the reorganization, according to a statement.
Capitol Peak Partners was founded by Engles and Ed Fugger in 2017. Prior to starting the PE firm, Engles served as chairman and CEO of WhiteWave, which sold to Danone for $12.5 billion, while Fugger was an executive VP at WhiteWave.