Eden Prairie-based Milk Specialties Global, a leading supplier of whey protein and other nutrition ingredients, is being sold for an undisclosed sum.
Eden Prairie's Milk Specialties Global sold to private equity firm
The nutrition ingredients company is a leading producer of whey protein isolate.
December 27, 2022 at 9:22PM
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.
"We're thrilled to join them in making high-quality, affordable nutrition products available to even more consumers," Butterfly's managing director, Aaron Kirkbride, said in a news release.
The deal is expected to close early in 2023.
Addition of 600 nurses more than offsets losses for the Minnesota Nurses Association when members at Mayo Fairmont decertified from the union.
