New Ownership for Borden Dairy

Company filed for Chapter 11 bankruptcy in January

DALLAS — Borden Dairy Co., Dallas, will soon have new owners.

Denver-based Capital Peak Partners will acquire the dairy company, which filed for Chapter 11 bankruptcy in January, for about $340 million following the completion of a court-supervised sale process, according to Borden. New York-based KKR, an existing lender to Borden, will become a minority investor. The changes are expected to finalize mid-July.

Borden’s business will remain intact following the sale, including all plants, branches, routes and the Borden brand, according to the company. The reorganized company will continue employing about 3,300 people.

"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 Borden CEO Tony Sarsam. "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."

The U.S. Department of Agriculture awarded Borden the largest contract through its Farmers to Families Food Box Program as part of the Coronavirus Farm Assistance Program in May.

"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 Capitol Peak's Founder and Managing Partner Gregg Engles, who was the former chairman and CEO of both Dean Foods and WhiteWave Foods. "The Capitol Peak team is excited by this unique opportunity to work alongside KKR and build this iconic dairy company."

Borden started reorganization proceedings on Jan. 5 to pursue a financial restructuring designed to reduce its debt load, maximize value and position the company for long-term success.

The Dallas-based company was founded in 1857. It produces more than 35 products, including milk, sour cream, flavored milk, creams and its Kid Builder milk with added protein and calcium.

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