Butterfly Jumps Into Ingredients Acquiring Milk Specialties Global

Private equity firm Butterfly is expanding its “seed to fork” strategy with its acquisition of vertically integrated dairy ingredient maker Milk Specialities Global. The company will continue to be led by CEO David Lenzmeier, a press release noted, who has held the role for 14 years.

The deal, announced on December 23, expands Butterfly’s portfolio to include ingredients for both human and animal feed nutrition. The group’s investments span agriculture and aquaculture, food and beverage products, food distribution, and foodservice. The company closed a $1 billion sophomore fund in August, bringing its total assets at the time to $4 billion.

In May 2021, Butterfly made a majority stake investment in organic egg provider Pete and Gerry’s Organics after selling a majority stake in its nutritional shake brand Orgain in February. The firm maintains a minority share in the company. It also counts avocado-based food product company Chosen Foods, juice and produce maker Bolthouse Farms and wellness brand MaryRuth Organics in its portfolio of “seed to fork” investments.

“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,” said Butterfly co-founders and co-CEOs Adam Waglay and Dustin Beck in a statement.

According to Milk Specialties website, the ingredient maker services human nutrition companies with whey, milk and specialty proteins as well as supplements and products for animal feed. The company was founded in 1949 and operates 12 facilities with over 900 employees. It has been owned by New York-based private equity firm American Securities since 2016.

Milk Specialties offers a diverse portfolio of ingredients to food makers including milk and whey proteins, caseins used in cheese production, and plant-based proteins that can be used in meat alternatives. The company also offers custom and private label manufacturing using extrusion and ready-mix powder capabilities. The other side of the ingredient provider’s business focuses on nutritional supplements primarily for dairy cows, pets and horses.

Milk Specialties’ CEO David Lenzmeier said in a press release statement that the partnership with Butterfly will allow the ingredient maker to “drive enhanced value creation” for its partners and “achieve a new level of growth.”