Marwit Capital Partners has completed the sale of its portfolio company, Driftwood Dairy, to Vietnam Dairy Products Corp.
Driftwood Dairy is one of the largest processors of fresh milk, juices, and other dairy products in California. Customers include schools, restaurants, convenience stores, food manufacturers, hospitals and other health care facilities, institutions, foodservice distributors and other dairy processors. The company is the largest supplier of fresh milk and juice to K-12 school districts in Southern California. Driftwood Dairy is headquartered near Los Angeles in El Monte, CA (www.driftwooddairy.com).
Marwit Capital acquired Driftwood Dairy in 2006, with several second and third generation members of the founding Dolan family remaining in key management positions. Under the leadership of CEO Partner Mac Berry – who joined the company shortly after the acquisition – the business was able to grow volumes and revenues by almost 50% over the investment period in a relatively flat overall US dairy market.
Vietnam Dairy Products (DBA Vinamilk) is the largest publicly-held company in Vietnam and one of the largest dairy companies in Asia. In 2015, Vinamilk reported total revenues of $1.8 billion, EBITDA of $450 million, and a market capitalization of $8.4 billion as of August 2016. The company was founded in 1976 and is based in Ho Chi Minh City (www.vinamilk.com.vn/en).
“This was truly one of the most intriguing transactions that I have had the pleasure of being involved with in more than 20 years in private equity, and I believe one of the most significant transactions to date involving the acquisition of a US business by a leading company based in Vietnam,” said Chris Britt, Marwit Managing Partner. “Vinamilk is a really fabulous company, with world-class management, and plans to be a $3 billion business within a few years. We could not have found a better partner for the next 100 years of Driftwood Dairy.”
Marwit is managed by three partners – Chris Britt, Matthew Witte and David Browne – with human resource strategy and support provided across all portfolio companies by Carol Farrell. The firm has completed over 60 buyouts, recapitalizations and growth equity investments in its history. Marwit was founded in 1962 and is headquartered in Newport Beach (www.marwit.com).
“We didn’t expect that we would find the next owner of Driftwood Dairy almost 8,000 miles away, but I am sure we found the right one, and the future is bright for both companies,” said Mr. Browne.
© 2016 Private Equity Professional • 8-12-16
