Butterfly to Acquire Milk Specialties Global
Credit: Milk Specialties Global
Butterfly, a Los Angeles-based private equity firm specializing in the food sector, has entered into a definitive agreement to acquire Milk Specialties Global, a leader in human and animal nutrition, from affiliates of American Securities LLC.
Founded in 1949 and based in Eden Prairie, Minn., Milk Specialties is an industry-leading, vertically integrated ingredient manufacturer focused on the processing of raw dairy inputs, such as milk and liquid whey, into value-added functional ingredients for a variety of growing nutrition end markets.
The company’s Human Nutrition segment is a leading performance nutrition manufacturer that produces high-quality dairy protein ingredients and products designed to optimize health and nutrition. Today, Milk Specialties’ Human Nutrition segment is the largest producer of whey protein isolate in the world. The company’s Animal Nutrition segment is a leading provider of science-based animal nutrition products for the dairy industry.
Milk Specialties operates 12 state-of-the-art facilities strategically positioned across the United States that allow the company to deliver high-quality, specialized ingredients and exceptional service to customers around the globe. It has been led for over 14 years by CEO and industry veteran David Lenzmeier, who will continue to lead the business going forward.
Milk Specialties is Butterfly’s latest investment within its “seed to fork” strategy spanning agriculture and aquaculture, food and beverage products, food distribution, and foodservice. Butterfly brings specialized expertise in performance nutrition as a result of its 2019 majority investment in Orgain, one of the fastest-growing consumer brands in the nutrition industry. In 2022, Butterfly sold a majority stake in Orgain to Nestlé Health Science and continues to own a minority stake.
“We are beyond excited to roll up our sleeves and get to work with the Butterfly team. Partnering with a food-focused firm like Butterfly, we can drive enhanced value creation for all partners. We are really looking forward to what the future holds because Butterfly will enable Milk Specialties to achieve a new level of growth,” said Lenzmeier.
“We’ve admired Dave and team from afar for many years and are excited to welcome them to the Butterfly family,” said Butterfly founders and CEOs Adam Waglay and Dustin Beck. “We’re confident that Milk Specialties’ industry leadership and best-in-class team, combined with our expertise in the space, will enable us to drive even greater success for the business going forward. We can’t wait to see what we can accomplish together.”
“The Milk Specialties team has continually pushed the envelope of quality, service and innovation in the protein space, and we’re thrilled to join them in making high-quality, affordable nutrition products available to even more consumers,” added Butterfly Managing Director Aaron Kirkbride.
Terms of the transaction were not disclosed. The transaction is expected to close in Q1 2023. Butterfly was advised by Kirkland & Ellis LLP on legal matters in connection with the transaction. Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC, and Rabo Securities USA, Inc. acted as financial advisors to Milk Specialties and Arnold & Porter Kaye Scholer LLP served as legal counsel.
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Loftus Appointed Sun-Maid President, COO
Sun-Maid Growers of California has appointed Steve Loftus as Sun-Maid president and chief operating officer, reporting to Harry Overly, executive chairman of the board. In this newly created role, all functional areas within Sun-Maid will report directly to Loftus as he will be accountable to the daily operations of the business. A 15-year industry veteran, Loftus is recognized for his ability to build and align cross functional partners around common objectives, delivering short and long term financial and strategic growth goals.
“Steve is an exceptional and proven leader in the food industry, and we’re looking forward to the contributions he will bring to the team as president and COO,” said Overly. “Steve’s strong track record of results and expertise will be a key driver in building our success as we continue to grow, transforming the iconic Sun-Maid brand to be even more relevant to today’s shoppers.”
Loftus is a multi-functional leader who has held various leadership roles at TreeHouse Foods and Kraft Heinz in Finance and General Management. Most recently, he served as the Vice president, general manager of the Condiments Business Unit at TreeHouse Foods, where he led the unit with approximately one billion in revenues across twelve product categories and five production facilities. Prior to that, Loftus was the head of customer finance at TreeHouse Foods, where he was responsible for all product and customer pricing strategies, as well as the company’s AOP planning processes.
In addition to delivering these positive results, Sun-Maid also continues with the integration of Plum PBC, Sun-Maid’s first ever acquisition. In his new role, Loftus will lead the Sun-Maid business as it continues to transform, achieve strong sales, and improve upon all operating metrics.
“I’ve always admired Sun-Maid, and I’m excited to officially join the team as president and chief operating officer to help take the brand to the next level,” added Loftus. “In the new role, I plan to continue accelerating Sun-Maid’s transformation into a consumer and market-focused organization, while executing daily operations that contribute to the company’s growth strategies.”
Loftus will replace Braden Bender, who has been serving as Sun-Maid’s interim president since September and is returning to his role as chief financial officer.
Founded in 1912, Sun-Maid Growers of California is a farmer’s cooperative of 600 grower families with vineyards in California’s Central Valley. From childhood to adulthood and generation to generation, Sun-Maid’s innovative snacks continue to feed imaginations one little red box at a time – because when imagination is used for good, there’s nothing more delicious! And while some things change, our real, minimally processed and consistently good ingredients haven’t. Always starting with a whole fruit you can see and taste, Sun-Maid continues to offer a trusted go-to snack that’s simple, healthy and versatile – imagine that!
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James Beard Foundation Holds Chef Action Summit
Over three days from Jan. 29-31, some of the nation’s best chefs, advocates, and leaders—many of whom are alumni of the James Beard Foundation Chef Bootcamp for Policy and Change—will come together in Houston for the Foundation’s preeminent Chef Action Summit. In support of the people behind America’s food culture, as well as a thriving, more equitable and sustainable food system—this is only the second time the James Beard Foundation has held a summit of this magnitude.
The James Beard Foundation, in partnership with Houston First Corporation, will host the pivotal event—resulting in a set of chef-driven policy recommendations for the 2023 Farm Bill. The Farm Bill is widely regarded as one of the most important pieces of food and agriculture policy that Congress passes about every five years. The bill has considerable ramifications for national food security and access, the environment, and support for farmers and rural America. Following the event, the recommendations will be shared with policymakers responsible for drafting the 2023 Farm Bill.
Summit participants will also influence the development of blueprints for local and state-based action, as it relates to America’s food and agriculture system. During the event, participants will have the opportunity to hear and engage with influential leaders from the policy, culinary, nonprofit, and corporate industries to address key issues such as:
● Nutrition Security and Hunger
● Conservation and Sustainability
● Improving Equity in the Industry
Featured speakers—with more to be announced soon—include:
● Anne Biklé, Biologist, science writer, and co-author, Dirt: The Erosion of Civilizations; The Hidden Half of Nature: The Microbial Roots of Life and Health; and Growing a Revolution: Bringing Our Soil Back to Life
● Joel Berg, CEO, Hunger Free America
● Stacy Dean, deputy under secretary for USDA’s Food, Nutrition, and Consumer Services
● Lisa Helfman, CEO, senior director, public affairs, H-E-B, and Founder and board chair, Brighter Bites
● Adrian Lipscombe, founder, 40 Acres Project
● Michel Nischan, co-founder and chairman, Wholesome Wave and founder and president, Wholesome Crave
● Karen Washington, farmer, activist, and co-owner, Rise&Root Farm
“Across our food system—from nutrition to hunger, conservation and agriculture, worker or supply chain issues—the stakes have never been higher. The James Beard Foundation is honored to bring together chef advocates, policy and industry leaders, and key stakeholders for critical dialogue and commitment pertaining to some of this country’s most pressing food issues,” said Clare Reichenbach, CEO of The James Beard Foundation.
“Chefs—with their unique ability to influence the way we think about and consume food, and as pragmatic problem solvers—have proven time and again that they are the critical champions we need for our communities and broader food system. The Foundation, through initiatives like the Chef Action Summit, is committed to ensuring they have the tools and training needed to drive change. We thank Houston First for being an incredible host and partner and look forward to presenting our policy recommendations in support of a more sustainable, equitable and thriving food system in early spring.”
The second JBF Chef Action Summit will take place at three distinct Houston institutions: The University of Houston Hilton Hotel and Conrad N. Hilton College of Global Hospitality, POST Houston, as well as The Power Center Houston.
The Summit, taking place just off the heels of the 10 year anniversary of the Foundation’s groundbreaking Chef Bootcamp for Policy and Change, features refreshers on the program, as well as new training, including: updated tools for working with local representatives, as well as municipal and state lawmakers; advocacy training for social media strategies to move the needle in obstinate cities and states; tactics on
fostering peer-to-peer support and networking; and deep-dive discussions around key sustainability issues.
“What is taking place in Houston this January will impact everyone,” said Houston First Corporation President and CEO Michael Heckman. “Not only will the 2023 Chef Action Summit drive important policy discussions that will influence 2023 legislation, the contents of those conversations will directly affect how our food supply remains safe, abundant and accessible to all. We applaud the James Beard Foundation for their continued commitment to addressing these difficult issues and look forward to hosting this influential group in Houston.
The Chef Action Summit is by pre-registration only. Programming will begin on Sunday, Jan. 29 at 4 p.m. at the University of Houston Hilton hotel. Later that evening, a special welcome reception for participants and speakers, hosted by Houston First Corporation, will happen on the rooftop of POST Houston, kicking-off the three-day series of events. Keynote panels, programming, and policy discussion will follow from Jan. 30-31, with Chef Christopher Williams—a 2022 James Beard nominee for “Outstanding Restaurateur”—closing out the Summit with a special tour and lunch at The Power Center.
The second Chef Action Summit—part of the James Beard Foundation’s advocacy programs—is hosted by the Houston First Corporation. Program sponsors include the Alaska Seafood Marketing Institute, Best Made, Deloitte, Distinguished Vineyards, Tabasco Brand, Tequila Patrón, and YETI. The James Beard Foundation’s programs are also supported by American Airlines, the official airline of the James Beard
Foundation; Capital One, the official credit card and banking partner of the James Beard Foundation; and Windstar Cruises, the official cruise line of the James Beard Foundation.
To learn more about the discussions happening at the 2023 JBF Chef Action Summit in Houston or to obtain more details about the participants and speakers at the event, visit https://www.jamesbeard.org/2023-chef-summit.
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