The US dairy company begins a new chapter with an appropriate capital structure and dairy industry veterans focused on serving customers and growing the business profitably
The sale of all the assets of US dairy company Borden has been complete for $340 million to equity investors Capitol Peak Partners and KKR. The transaction closed in just under a month after the company announced the agreement with the investors.
This transaction allows Borden to be appropriately capitalised with the business intact, including all plants, branches, routes and the Borden brand.
The new Borden entity will continue employment for approximately 3,300 existing employees and service for its customers.
Capitol Peak assumed majority ownership of the new company, and KKR became a lender and minority equity investor.
A new board of directors and leadership team has been established, tapping dairy industry veterans to lead the company:
- Gregg Engles, the founder and executive managing partner of Capitol Peak, has taken on the role of chairman and chief executive of the new Borden. Engles brings extensive dairy industry experience as the former chairman and chief executive of dairy companies Dean Foods and The WhiteWave Foods.
- Pat Boyle has joined Borden as president. He has worked in the dairy industry since the 1970s, most recently serving as owner and chief executive of Hill Country Dairies.
- Pat Ford has been appointed chief financial officer. Ford previously served in this role at Dairy Group and Southern Foods, and most recently was the owner and president of Flexcel, an east Texas manufacturer of oil and gas tools.
- Pete Schenkel has also been appointed to the new Borden board. Schenkel previously served as president and owner of Southern Foods, which later sold to Suiza Foods and became Dean Foods. He is also the former president and a board member of Dean Foods.
“Over the past 163 years, Borden defined its well-recognised and reputable brand by partnering with America’s dairy farmers and leading retailers to provide American families with delicious and nutritious products,” said Engles.
“I am very optimistic about Borden’s future and excited about the opportunity to lead this iconic dairy company into a bright new chapter focused on serving customers and growing the business profitably.”
Borden initiated voluntary reorganisation proceedings on 5 June 2020. Upon finalising the sale, Borden’s former controlling and majority equity holders, ACON Investments and Grupo Lala, respectively, no longer have an ownership interest in the business.
KKR’s investment is held by business development companies co-managed by KKR Credit.
Date published: 22 July 2020