Butterfly Announces $300 Million Dividend Recapitalization of Milk Specialties Global

LOS ANGELES--(BUSINESS WIRE)--Butterfly, a Los Angeles-based private equity firm specializing in the food sector, today announced the successful closing of a $300 million second lien term loan facility (the “Second Lien Term Loans”) issued by portfolio company Milk Specialties Global (“Milk Specialties” or the “Company”). GoldenTree Asset Management LP provided the Second Lien Term Loans for the transaction and the net proceeds thereof were used to complete a distribution to Milk Specialties shareholders. The Company’s preexisting first lien secured credit facility remains in place.

Based in Eden Prairie, Minnesota, 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. Butterfly acquired the Company in February 2023 following other investments in the vitamins, minerals and supplements space including Orgain and MaryRuth Organics.

“We entered into our partnership with the Milk Specialties team with high expectations, and those expectations have been exceeded," said Butterfly Managing Director and Milk Specialties board member Aaron Kirkbride. "In returning this capital to shareholders, we’re recognizing the great work of the entire Milk Specialties team and our confidence in the company’s continued success.”

Butterfly was advised by Kirkland & Ellis LLP on legal matters in connection with the transaction. GoldenTree was advised by Freshfields Bruckhaus Deringer LLP on legal matters in connection with the transaction.

About Milk Specialties Global

Milk Specialties Global is a manufacturer of nutritional ingredients for the health and wellness, performance nutrition and functional food industries, with 12 manufacturing facilities in WI, MN, NE, IL, ID and CA. The core of Milk Specialties’ business is in high protein ingredients (whey protein concentrates, isolates and hydrolysates, as well as milk protein concentrates, isolates and micellar casein), lactose and permeate as well as value added ingredients such as lactoferrin. Milk Specialties also has a significant presence within the pet and livestock feed industries. Additional information about Milk Specialties, including the benefits of its proprietary processing methods, can be found at www.milkspecialties.com.

About Butterfly

Butterfly is a Los Angeles, California-based private equity firm specializing in the food sector, spanning the entire food value chain from “seed to fork” via four key segments: upstream & processing, B2B service providers, multi-site and branded goods. Butterfly manages over $4 billion of assets to date and aims to generate attractive investment returns through deep industry specialization, a disciplined and data-driven investment process and a hands-on approach to portfolio transformation. For additional information about Butterfly, please visit its website at www.bfly.com.

About GoldenTree Asset Management LP

GoldenTree is an employee-owned, global asset management firm that specializes in opportunities across the credit universe in sectors such as high yield bonds, leveraged loans, private credit, distressed debt, structured credit, emerging markets, real estate, and private equity and credit-themed equities. GoldenTree was founded in 2000 by Steve Tananbaum and is one of the largest independent, global credit asset managers. GoldenTree manages approximately $55 billion for institutional investors, including leading public and corporate pensions, endowments, foundations, insurance companies and sovereign wealth funds. GoldenTree has over 310 employees, with offices in New York, West Palm Beach, Charlotte, Newport Beach, Dallas, London, Dublin, Munich, Singapore, Sydney, Tokyo and Dubai. For more information, please visit www.goldentree.com.