Borden Dairy approved for sale to Capitol Peak Partners and KKR
Topics: BORDEN DAIRY CAPITOL PEAK PARTNERS KKR
Capitol Peak will assume majority ownership of the new company, and KKR, an existing lender to Borden, will be a minority investor.
Following the transaction, Borden will be appropriately capitalized, and the business will remain intact, including all plants, branches, routes and the Borden brand.
The newly reorganized Borden will be able to continue employment for approximately 3,300 Borden employees and service for Borden customers.
Borden initiated voluntary reorganization proceedings on Jan. 5, 2020, to pursue a financial restructuring designed to reduce its current debt load, maximize value and position the company for long-term success.
Today, the court granted approval of the approximately $340 million sale.
Upon closing of the transaction, Borden's former controlling and majority equity holders, ACON Investments and Grupo Lala, respectively, will no longer have ownership interest in the business.
Capitol Peak and KKR will establish a new board of directors. ■