This transaction allows Borden to be appropriately capitalized with the business intact, including all plants, branches, routes and the Borden brand. The new Borden entity will continue employment for approximately 3,300 Borden employees and service for Borden customers.
Capitol Peak assumed majority ownership of the new company, and KKR became a lender and minority equity investor. They established a new Board of Directors and leadership team, tapping dairy industry veterans to lead the Company:
Gregg Engles is the Chairman and CEO of the new Borden entity and also serves as Capitol Peak’s Founder and Executive Managing Partner. He brings extensive dairy industry experience as the former Chairman and CEO of both Dean Foods and The WhiteWave Foods Company.
Pat Boyle is the President. He has worked in the dairy industry since the 1970s, most recently serving as Owner and CEO of Hill Country Dairies.
Pat Ford is the Chief Financial Officer. He previously served as CFO of Dairy Group (Dean Foods) and Southern Foods and most recently was Owner and President of Flexcel Company, Inc., an east Texas manufacturer of oil and gas tools.
Pete Schenkel is a Board Member who 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-recognized 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 reorganization proceedings on Jan. 5, 2020. Upon finalizing the sale, Borden’s former controlling and majority equity holders, ACON Investments and Grupo Lala, respectively, no longer have ownership interest in the business. KKR’s investment is held by business development companies co-managed by KKR Credit.
About Borden
Founded in 1857 by Gail Borden, Jr., Borden is a heritage American brand that produces more than 35 wholesome and delicious products enjoyed by millions of people every day. Borden was the first company to develop a patent for the process of condensing milk, as well as the first company to use glass milk bottles. In 1936, Elsie became America’s favorite spokes-cow, and was recognized in 2000 by AdAge as one of the top 10 advertising icons of the 20th century. Today, Borden is headquartered in Dallas and operates 12 milk processing plants and nearly 100 branches across the U.S. that produce and distribute nearly 500 million gallons of milk annually for customers in the grocery, mass market, club, food service, hospitality, school and convenience store channels. The company’s People First culture has inspired decades of loyal tenure among hundreds of the 3,300 people Borden employs. In 2019, Borden landed the No. 16 spot on Forbes’ list of America’s Most Reputable Companies, highlighting the company’s well-earned trust amongst consumers. For more information, visit bordendairy.com.
About Capitol Peak Partners
Capitol Peak Partners is a middle market private equity firm focused on consumer businesses in North America. Capitol Peak is composed of seasoned operators and business builders with a 30-year track record of extraordinary value creation at companies like Dean Foods and WhiteWave Foods, where they partnered with talented managers to generate exceptional risk-adjusted returns for investors. As a partnership of operators, Capitol Peak contributes more than just capital to help companies grow, including leveraging an extensive network of operators when appropriate. For more information, visit capitolpeakpartners.com.
About KKR
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
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