Butterfly acquires Milk Specialties Global to boost human and animal protein positioning

02 Jan 2023 --- US-based private equity firm Butterfly, which specializes 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.

“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,” asserts the company.

Milk Specialties is a vertically integrated ingredient manufacturer focused on processing raw dairy inputs, such as milk and liquid whey, into value-added functional ingredients for various growing nutrition end markets. 

The company’s Human Nutrition segment is a 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, it claims. 

The company’s Animal Nutrition segment is also 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 US that allow the company to deliver high-quality, specialized ingredients and service to global consumers.

In 2022, Butterfly sold a majority stake in Orgain to Nestlé Health Science and continued to own a minority stake.Seed-to-fork investing 
Milk Specialties is Butterfly’s latest investment within its “seed to fork” strategy spanning agriculture and aquaculture, F&B 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 continued to own a minority stake.

“Partnering with a food-focused firm like Butterfly, we can drive enhanced value creation for all partners. We are looking forward to what the future holds because Butterfly will enable Milk Specialties to achieve a new level of growth,” says Milk Specialties’ CEO David Lenzmeier.

“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 but are expected for disclosure in Q1 2023. 

Butterfly sales and acquisitions 
Last year, Butterfly Equity sold a majority stake in plant-based nutrition company Orgain, to Nestlé Health Science. Butterfly acquired its stake in Orgain and the Ontario Teachers’ Pension Plan in 2019.

The company’s deal with Nestlé Health Science to further plant-based nutrition reflects Innova Market Insights’ number two Top Ten Trends for 2022, “Plant-Based: The Canvas for Innovation.” Consumers increasingly consider plant-based alternatives to be healthier and better for the planet, driving R&D across the industry.

Edited by Louis Gore-Langton