Capitol Peak Partners and KKR have completed the acquisition of Borden Dairy assets for approximately $340m.

With this divesture, Borden aims to start fresh with an appropriate capital structure, keeping all its businesses plants, branches, routes and the Borden brand intact.

Borden chairman and CEO Gregg Engles said: “Over the past 163 years, Borden defined its well-recognised and reputable brand by partnering with America’s dairy farmers and leading retailers to provide American families with delicious and nutritious products.

“I am very optimistic about Borden’s future and excited about the opportunity to lead this iconic dairy Company into a bright new chapter focused on serving customers and growing the business profitably.”

Borden added that it will continue to serve its customers, as well as retain approximately 3,300 employees.

In the Borden business entity, Capitol Peak will hold a majority ownership stake, while KKR will be a lender and minority equity investor.

KKR investment in the entity will be held by business development companies co-managed by KKR Credit.

With the finalisation of the deal, Borden’s former controlling and majority equity holders, ACON Investments and Grupo Lala will no longer have an ownership interest in the business.

Borden Dairy, along with some of its affiliates initiated voluntary reorganisation proceedings in the District of Delaware under Chapter 11 of the Bankruptcy Code in January.

In June, Borden Dairy announced that Capitol Peak Partners and its affiliates are purchasing ‘substantially all of its assets’.

As part of the deal, Capitol Peak will own a significant stake in the company, while the remaining stake will be held by KKR, a global investment firm and existing lender to Borden.