Butterfly Equity to buy human and animal nutrition firm Milk Specialties

Butterfly Equity, a US-based investment firm specializing in the food sector, has agreed to acquire Milk Specialties Global, a human and animal nutrition manufacturer, from affiliates of American Securities for an undisclosed amount.

The acquisition of Milk Specialties marks Butterfly Equity’s latest investment as part of the equity firm’s “seed to fork” strategy spanning agriculture and aquaculture, food and beverage products, food distribution, and foodservice.

Milk Specialties Global manufactures nutritional ingredients for the health and wellness, performance nutrition and functional food industries.

The Eden Prairie, Minnesota-based company’s human nutrition segment manufactures protein ingredients, including whey protein concentrates, isolates, and hydrolysates, as well as milk protein concentrates, isolates, and micellar casein, apart from lactose and permeate.

Milk Specialties Global’s animal nutrition segment manufactures science-based animal nutrition products for the dairy industry.

Founded in 1949, Milk Specialties Global operates 12 manufacturing facilities across the US.

Aaron Kirkbride — Butterfly Equity Managing Director said: “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.”

Goldman Sachs & Co., Credit Suisse Securities (USA), and Rabo Securities USA served as financial advisors to Milk Specialties Global.

Arnold & Porter Kaye Scholer and Kirkland & Ellis acted as legal counsels for Milk Specialties Global and Butterfly Equity respectively.

Subject to customary closing conditions, the acquisition is anticipated to complete in the first quarter of 2023.

In 2019, Butterfly Equity, alongside investors Ontario Teachers’ Pension Plan Board and DCP Capital, acquired a majority stake in Orgain, a protein powders, shakes and bars manufacturer.

In 2022, Butterfly Equity sold a majority stake in Orgain to Nestlé Health Science and continues to hold a minority interest.

American Securities, a New York-based private equity firm, and its affiliates have more than $26 billion under management.