US dairy processor and distributor, Borden Dairy will be bought out of bankruptcy by two investment firms, Capitol Peak Partners and KKR & Co.
According to documents filed in the US Bankruptcy Court for the District of Delaware, New Dairy Opco LLC was the highest bidder during the auction. New Dairy Opco’s portfolio includes Capitol Peak Partners and KKR & Co.
Capitol Peak Partners is led by former chairman and CEO of Dean Foods, Gregg Engles. Borden tried unsuccessfully to merge with Dean Foods – which has also declared bankruptcy – earlier this year. The majority of Dean’s assets were purchased by Dairy Farmers of America at the beginning of April 2020.
Meanwhile, KKR & Co is a previous owner of Borden, having bought and privatised the company for $2 billion in 1995
The news comes shortly after Borden filed for Chapter 11 bankruptcy back in January, citing market challenges facing the dairy industry and the rising cost of raw milk as contributing factors.
Borden’s debts at the time were allegedly somewhere between $100 million to £500 million.
While the sale of Borden seems imminent, bankruptcy court approval is still required. These details and the purchasing price will be finalised during a hearing on Thursday 18 June.
© FoodBev Media Ltd 2020