Borden, which filed bankruptcy in January in a spate of dairies going under, has been sold to New Dairy Opco, backed by Capitol Peak Investors, which purchased a majority stake for $340 million. KKR, which was an existing lender, retains a minority stake in the dairy. ACON Investments and Grupo Lala, former equity holders, will no longer be involved with the company. CEO Tony Sarsam, who took over the reins in 2018 and oversaw the bankruptcy proceedings, will step down from Borden this month and will be succeeded by Gregg Engles, head of the Capitol Peak.
"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 Sarsam in a local news report. "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."
Engles has a history in the dairy industry. He merged his Suiza brand with Dean Foods, where he became chairman and CEO. He then became CEO of Dean’s Whitewave, which was then sold to Danone, before founding Capitol Peak.
"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 Engles. "The Capitol Peak team is excited by this unique opportunity to work alongside KKR and build this iconic dairy company."
Borden’s 12 facilities in the U.S. will remain open and 3,300 employees will keep their positions. During the pandemic and bankruptcy proceedings, Borden has continued to provide service to customers and was even awarded the largest contract by the U.S. Department of Agriculture for its Farmers to Families Food Box program.