US-based company Borden Dairy has announced that Capitol Peak Partners and its affiliates are purchasing ‘substantially all of its assets’.

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

The court approved the sale of Borden Dairy for around $340m.

Borden CEO Tony Sarsam said: “Borden received strong investor interest and multiple bids throughout this sale process, which is a testament to the terrific work the people of Borden have done to build a valuable and enduring 163-year old brand.

“Despite being in the midst of Chapter 11 and a global pandemic, our team managed to generate positive cash flow, grow our customer footprint and maintain an uninterrupted food supply to nourish American families.

“We are exiting Chapter 11 as a thriving company that is meeting and exceeding its performance forecasts, making our outlook very promising.”

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

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Completion of the deal is subject to certain closing conditions, including the entry of a final order, expected to take place in mid-July.

Upon completion of the deal, Borden’s plants, branches, routes will remain operational along with its workforce of nearly 3,300 employees.

Capitol Peak founder and managing partner Gregg Engles said: “Borden has a rich history of partnering with America’s dairy farmers and leading retailers to provide wholesome nutrition for American consumers and families.

“The Capitol Peak team is excited by this unique opportunity to work alongside KKR and build this iconic dairy company.”