Private equity firm Capitol Peak Partners and investment company KKR plan to acquire dairy products producer Borden for $340 million after the transaction was approved in a court-supervised sale processes linked to Borden’s Chapter 11 reorganization proceedings.

“Borden received strong investor interest and multiple bids throughout the 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,” the dairy firm’s chief executive officer, Tony Sarsam, said in a recent release. “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.”

The company voluntarily entered reorganization proceedings in January to restructure in an effort to reduce its current debt load, increase value, and put Borden on a path to succeed in the future. 

Under the terms of the deal, two majority equity holders in Borden, Groupo Lala and ACON Investments, will relinquish their ownership interests. Capitol Peak and KKR intend to create a new board of directors when the transaction closes. 

“Borden has a rich history of partnering with America’s dairy farmers and leading retailers to provide wholesome nutrition for American consumers and families,” said Capitol Peak Founder and Managing Partner Gregg Engles in the release. “The Capitol Peak team is excited by this unique opportunity to work alongside KKR and build this iconic dairy company.”

The transaction is expected to close in July.