The plant, previously owned by Kansas Dairy Ingredients (“KDI”), is a state-of-the-art, 135,000 square-foot facility able to produce 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. KDI’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 SC&H team conducted an exhaustive marketing process resulting in over 33 groups conducting due diligence and received a stalking horse bid of $25,000,000 for the facility. After SC&H circulated notice of the opportunity to overbid, Upfield submitted a topping bid of $26,000,000 and was deemed the winning bidder.
Challenges to closing stemming from contingencies associated with farming leases, water rights, and other title covenants and restrictions needed to be resolved before closing. SC&H, the Receiver, and its professionals worked with the various local and state government administrators to successfully resolve these issues.
