SC&H Capital, a leading investment bank specializing in M&A advisory, is pleased to announce it has completed a sale of KDI Cheese Co., LLC’s (“KDI” or the “Company”) closed dairy processing facility to Netherlands-based Upfield US, Inc. (“Upfield”), a portfolio company of KKR.
The KDI facility is a recently renovated, state-of-the-art, 135,000 square-foot facility that produces ultra filtered whole milk, cream, ultra filtered skim milk, cheese, and butter. The site has a daily milk intake capacity of approximately 2,200,000 lbs. The Company’s efforts to sell the facility while operating were unsuccessful, production was halted, and CR3 Partners was appointed as the Receiver to sell the assets.
The Receiver retained SC&H Capital in April 2024 as the exclusive investment banker to run the sale process. The facility was one of the largest employers in the area before shutting down. The objective was to close a transaction with a buyer that would restart operations and hire back the largest number of the approximately 150 ex-employees. The team at SC&H Capital conducted an exhaustive international marketing process and contacted all groups that considered the opportunity during the prior sale process. Five groups submitted letters of intent to purchase the assets. An auction was conducted in Hugoton, KS on August 28 with Upfield ultimately being designated as the winning bidder. The transaction closed on September 20, 2024.
“We were pleased to have found a buyer able to utilize the specialty equipment and processes in place, restart operations, and begin to hire back many of the former employees,” said Hank Waida, Principal at SC&H Capital.
Other professionals who worked on the transaction include Dustin Lough, with CR3 Partners; Andrew Lonard, Michael Tamburini, and Daniel Yoza, with Levy Craig Law Firm; and Nicholas Zluticky, Zachary Hemenway, and Thomas Homan with Stinson LLP.
About SC&H Capital
SC&H Capital is an investment banking and advisory firm specializing in mergers and acquisitions (M&A), distressed M&A, capital raises, financial restructurings, employee stock ownership plans (ESOP), and business valuations for middle-market companies nationally. SC&H is recognized for delivering relevant market insights and tailored solutions to help businesses achieve their true strategic value. To learn more, visit www.schcapital.com.
