Got Milk? Sector Pros and KKR Buy Borden

KKR (NYSE: KKR) makes private equity, fixed income, and other investments in companies in North America, Europe, Asia, and the Middle East. KKR was founded in 1976 and in addition to its New York head office has offices in 19 cities around the globe.

Following the completion of a court-supervised sale procedure launched in January 2020, Borden Dairy has actually been gotten for $340 million by Capitol Peak Partners and KKR. At closing, Capitol Peak will presume majority ownership of the business, and KKR, an existing loan provider to Borden, will be a minority investor.

Mr. Engles is the former chairman and CEO of both Dean Foods and, more recently, WhiteWave Foods, the maker of Horizon natural milk, Silk plant-based milk, therefore Delicious dairy-free ice cream. WhiteWave was sold to Danone in April 2017 for $12.5 billion.

ACON Investments and Grupo Lala, a Mexican dairy company, got Borden in July 2017. Upon closing of this deal ACON and Grupo Lala will no longer have an ownership interest in the company.

This transaction is anticipated to close by the end of July.

” Borden has a proud and long history as a dairy industry leader. We are delighted to sign up with Capitol Peak in supporting Borden and its lots of devoted workers through a restructuring that cleans up the slate for Borden to start a new chapter,” said Lauren Krueger, a handling director at KKR.

” Borden got strong financier interest and several quotes throughout this sale procedure, which is a testament to the fantastic work the individuals of Borden have actually done to construct a important and long-lasting 163-year-old brand name,” said Borden CEO Tony Sarsam. “Despite remaining in the midst of Chapter 11 and a worldwide pandemic, our group managed to generate favorable money flow, grow our client footprint and preserve an uninterrupted food supply to nourish American households.”

Borden runs 12 milk processing plants and nearly 100 branches throughout the US that produce and distribute almost 500 million gallons of milk every year. The businesss items are offered through the grocery, mass market, club, food service, hospitality, benefit, and school store channels. Dallas-based Borden has more than 3,300 workers.

Borden was established in 1857 by Gail Borden, Jr. and was the first business to develop a patent for the process of condensing milk and was the first company to use glass milk bottles. In 1936, the company introduced its Elsie “spokes-cow” logo design which was touted in 2000 by AdAge as one of the leading 10 marketing icons of the 20th century.

” Borden has an abundant history of partnering with Americas dairy farmers and leading sellers to supply wholesome nutrition for American customers and families,” said Gregg Engles, Capitol Peaks founder and handling partner. “The Capitol Peak group is delighted by this special opportunity to work together with KKR and build this renowned dairy business.”

Capitol Peak was established in August 2017 by Mr. Engle and Ed Fuggar– the former EVP of WhiteWave– and is headquartered in Denver. The company buys middle market consumer product companies with EBITDA of as much as $25 million.

Milk usage in the US has actually decreased more than 40% given that 1975 with market share increasingly taken by soda, milk and juice alternatives made from soy or almonds.

Private Equity Professional|June 30, 2020

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