Butterfly Equity has agreed to acquire Milk Specialties Global from American Securities.
Milk Specialties is a manufacturer of whey and milk protein ingredients – isolates, concentrates, hydrolysates, functional fats and carbohydrates – used in the sports nutrition and functional foods end-markets. Milk Specialties’ products – used in both human nutrition and animal nutrition markets – are sold under the labels of its customers through major global retailers. According to the company, it is the largest producer of whey protein isolate in the world.
Whey protein isolate is a form of whey protein that is created during the process of making cheese from milk and contains amino acids – including leucine, isoleucine, and valine – needed for muscle growth and repair. Additionally, whey protein isolate contains immunoglobulins, which are protective compounds found naturally in milk that help support immunity by boosting the body’s natural defenses against infection and disease. Finally, whey protein isolate is free from lactose, which makes it suitable for people who are lactose intolerant or have difficulty digesting dairy products.
Milk Specialties, led by CEO David Lenzmeier and founded in 1949, is headquartered near Minneapolis in Eden Prairie, Minnesota, and operates 12 facilities located in Wisconsin, Minnesota, Nebraska, Illinois, Idaho, and California.
“We are beyond excited to roll up our sleeves and get to work with the Butterfly team,” said Mr. Lenzmeier. “Partnering with a food-focused firm like Butterfly, we can drive enhanced value creation for all partners. We are really looking forward to what the future holds because Butterfly will enable Milk Specialties to achieve a new level of growth.”
“We’ve admired Dave and team from afar for many years and are excited to welcome them to the Butterfly family,” said Butterfly’s co-founders and co-CEOs Adam Waglay and Dustin Beck in a released statement. “We’re confident that Milk Specialties’ industry leadership and best-in-class team, combined with our expertise in the space, will enable us to drive even greater success for the business going forward. We can’t wait to see what we can accomplish together.”
“The Milk Specialties team has continually pushed the envelope of quality, service, and innovation in the protein space, and we’re thrilled to join them in making high-quality, affordable nutrition products available to even more consumers,” added Butterfly Managing Director Aaron Kirkbride.
Butterfly is an active investor in the agriculture, aquaculture, food and beverage products, food distribution and foodservice sectors. The firm was founded in 2016 and is headquartered in Beverly Hills, California.
American Securities invests in businesses with $200 million to $2 billion of revenue and $50 million to $250 million of EBITDA. Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products. The firm has more than $26 billion of capital under management and has offices in New York City and Shanghai.
Goldman Sachs & Co., Credit Suisse Securities (USA), and Rabo Securities USA were the financial advisors to Milk Specialties.
Butterfly’s acquisition of Milk Specialties is expected to close by the end of 2023’s first quarter.
© 2023 Private Equity Professional | January 5, 2023
