Borden Dairy announced Friday the sale of all Borden assets to Capital Peak Partners and its affiliates following a court-approved sale process. The $340 million transaction includes all plants, branches, routes and the Borden brand. Farmers will experience no disruption.
"Borden received strong investor interest and multiple bids throughout this sale process, which is a testament to the terrific work the people of Borden have done to build a valuable and enduring 163-year-old brand," said Borden CEO Tony Sarsam. "Despite being in the midst of Chapter 11 and a global pandemic, our team managed to generate positive cash flow, grow our customer footprint and maintain an uninterrupted food supply to nourish American families. We are exiting Chapter 11 as a thriving company that is meeting and exceeding its performance forecasts, making our outlook very promising."
Capitol Peak will assume majority ownership of the new company, and KKR, an existing lender to Borden, will be a minority investor.
"Borden has a rich history of partnering with America's dairy farmers and leading retailers to provide wholesome nutrition for American consumers and families," said Capitol Peak's Founder and Managing Partner Gregg Engles, who brings extensive dairy industry experience as the former Chairman and CEO of both Dean Foods and WhiteWave Foods. "The Capitol Peak team is excited by this unique opportunity to work alongside KKR and build this iconic dairy company."
Once the deal closes, Borden's former controlling and majority equity holders, ACON Investments and Grupo Lala, respectively, will no longer have any ownership interest in the business.
"Borden has a long and proud history as a dairy industry leader. We are pleased to join Capitol Peak in supporting Borden and its many dedicated employees through a restructuring that cleans the slate for Borden to start a new chapter," said KKR Managing Director Lauren Krueger.
Borden filed for Chapter 11 bankruptcy on Jan. 5, 2020.