Gilman Cheese Company, a portfolio company of Borgman Capital, has acquired Dairyfood USA, a maker of branded and private label extended shelf-life cheeses.
Dairyfood’s products include bulk and single-serving cheeses including snack wedges, portion-control cups, dips and spreads. According to the company, it is the largest supplier of smoked Gouda in the United States.
Dairyfood’s customers are active in the gift-packing, transportation, snack, foodservice, club store, and retail sectors. Company-owned brand names include Queso de Casa, Glacier Ridge Farms, and Sonoma Jacks. Dairyfood is led by CEO Daniel Culligan and is headquartered 30 miles west of Madison in Blue Mounds, Wisconsin.
“Throughout the selling process, it became distinctly obvious that Borgman Capital was the right choice to lead Dairyfood in its next chapter. The professionalism, honesty and genuine respect for our team and culture is what set them apart from other buyers,” said Mr. Culligan, president and CEO of Dairyfood.
Gilman Cheese produces and packages shelf-stable processed cheese for the gift pack, retail, and airline sectors and also produces natural and processed smoke cheeses. The company has more than 180 employees and produces more than 1.6 million pounds of processed cheese per month through more than 450 different products.
Gilman Cheese, led by CEO David Delgado, is headquartered in the northern Wisconsin city of Gilman. The company was founded in 1948 as Drangle Foods – its name was changed to Gilman Cheese in 2010 – and was acquired by Borgman Capital in March 2019.
Borgman Capital invests in companies with revenues of $5 million to $75 million and EBITDA from $500,000 to $10 million. The firm invests across a range of industries and prefers to invest in companies located in the Central and Eastern United States. Borgman Capital is an independent sponsor with funding for acquisitions coming from personal equity, accredited investors, and family offices. The firm is led by its managing directors Sequoya Borgman, David Bartelme and Michael Pepke and is headquartered in Milwaukee.
“The people, products and legacy of Dairyfood offer a wealth of benefits to Gilman Cheese,” said Mr. Borgman. “We are excited about the synergies and growth opportunities ahead.”
Old Second Bank provided senior financing and Medallion Capital provided subordinated financing for this transaction.
© 2022 Private Equity Professional | June 21, 2022