DALLAS – Capitol Peak Partners, a middle market private equity company, provided the winning bid to acquire the Borden Dairy Co. for approximately $340 million. Borden filed for Chapter 11 bankruptcy protection this past January. The transaction requires approval of the US Bankruptcy Court in Wilmington, Del.

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 minority investor KKR will establish a new board of directors once the transaction is approved.

“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 Gregg Engles, founder and managing partner of Capitol Peak, and the former chairman and chief executive officer of the Dean Foods Co. “The Capitol Peak team is excited by this unique opportunity to work alongside KKR and build this iconic dairy company.”

The transaction is expected to be finalized by mid-July, according to the company.

In its filing with the bankruptcy court the company said net sales in 2018 were $1.19 billion with gross profit of $292 million. The company produces a full range of dairy products, including fluid milks, sour cream, creams and dips. Fluid milk and cream make up 92% of revenues, juices and other beverages make up 5%, ice cream 2% and cultured products 1%, according to the company. It operates 12 manufacturing plants and employs 3,300.