Dallas-based Borden Dairy Co. is expected to be sold to a new investor group for $340 million about six months after filing for Chapter 11 bankruptcy protection.
The company operates a milk processing plant in Lafayette at 1308 Bertrand Drive and has about 220 workers in Louisiana, about 70% of whom work in Lafayette. Borden Dairy also employs workers in Baton Rouge, New Orleans, Hammond, Lake Charles, Monroe and Shreveport, according to the company. There are more than 3,300 workers across the entire business footprint.
Capitol Peak Partners will be the new majority owners and KKR, which is already a lender to Borden, will have a minority stake. They are expected to appoint a new board of directors. After the deal closes in mid-July, ACON Investments and Grupo Lala won't have stakes in the company.
Gregg Engles, the former chairman and chief executive of rival company Dean Foods Co., is leading the Capitol Peak group, which is the senior partner in the joint venture.
Borden management doesn't expect changes to its facilities or customer delivery routes.
Borden Dairy has 12 manufacturing facilities across the U.S. and more than 75 distribution centers. Borden Dairy is the only purchaser of milk for 259 independent family farms across the country, records show. Its customers include Walmart, Starbucks, Food Lion and independent school districts.
"Despite being in the midst of Chapter 11 and a global pandemic our team managed to generate positive cash flow (and) grow our customer footprint," Tony Sarsam, CEO of Borden, said in a news release.
Borden tried unsuccessfully to merge with Dean in April, The Wall Street Journal reported, before Dean’s assets were purchased out of bankruptcy by Dairy Farmers of America Inc., the nation’s largest dairy cooperative by membership.
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