Butterfly, a Los Angeles-based private equity firm specializing in the food sector, announced its entry into a definitive agreement to acquire Milk Specialties Global, a leader in human and animal nutrition, from affiliates of American Securities LLC.

Founded in 1949 and based in Eden Prairie, Minn., 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. The company's Human Nutrition segment is a leading 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. The company's Animal Nutrition segment is 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 exceptional service to customers around the globe. It has been led for more than 14 years by CEO and industry veteran David Lenzmeier, who will continue to lead the business going forward.

Milk Specialties is Butterfly’s latest investment within its “seed to fork” strategy spanning agriculture and aquaculture, food and beverage 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 continues to own a minority stake.