(Bloomberg) — American Securities, a New York-based private equity firm, is considering a sale of Milk Specialties Global that could value the ingredients company at more than $1.5 billion, according to people familiar with the matter.
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The buyout firm is working with advisers to run an auction process for the Eden Prairie, Minnesota-based company, said the people, who asked not to be identified because they weren’t authorized to speak publicly. Milk Specialties is expected to attract interest from chemical firms and other private equity firms, the people said.
American Securities hasn’t made a final decision on pursuing a sale and its plans could change, the people added.
A representative for American Securities declined to comment. A spokesperson for Milk Specialties didn’t have an immediate comment.
Milk Specialties, which American Securities bought from peer Kainos Capital for an undisclosed sum in 2016, makes whey and milk-protein ingredients for products ranging from baked goods to sauces and dressings, according to its website. American Securities has backed management, led by Chief Executive David Lenzmeier, to make acquisitions including Kay’s Processing in 2021.
American Securities, which raised $7 billion for its last pool of capital in 2018, also owns stakes in medical transport group Air Methods and renewable energy group CS Energy, according to its website.
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