Eden Prairie-based Milk Specialties Global, a leading supplier of whey protein and other nutrition ingredients, is being sold for an undisclosed sum.
Butterfly, a Los Angeles-based private equity firm that focuses on the food industry, announced last week it will buy the business from American Securities.
Milk Specialties processes milk and liquid whey into a range of products at a dozen manufacturing facilities in six states. The 73-year-old company says it is now the world's largest producer of whey protein isolate, which is used in the fast-growing protein powder market.
"We are really looking forward to what the future holds, because Butterfly will enable Milk Specialties to achieve a new level of growth," said a statement from Milk Specialties CEO David Lenzmeier, who will continue to lead the company after the sale.
Whey protein is an $11 billion global market, according to Fortune Business Insights, with North America accounting for a third of those sales. Over the next decade the category is expected to grow more than 7% a year, on average, as consumers continue to put more protein in their diets.
American Securities, a New York-based private equity firm, bought Milk Specialties in 2016.
"During our partnership, the company has invested approximately $150 million in supply chain, operations and manufacturing to drive efficiencies and support volume growth of more than 70%, resulting in earnings nearly doubling," American Securities managing director Helen Chiang said in a statement.
Butterfly has invested in a variety of consumer products, including Bolthouse Farms, Chosen Foods and Orgain. The Milk Specialties investment is part of the firm's "seed-to-fork" strategy that encompasses other aspects of the food system.
