Marwit Capital Completes the Sale of Driftwood Dairy, Inc.
Newport Beach, CA – August 9th, 2016 – Marwit Capital Partners II, L.P. announced today that it has completed the sale of its portfolio company, Driftwood Dairy, Inc. to Vietnam Dairy Products Corp. (“Vinamilk”). Founded in 1920, Driftwood Dairy is one of the largest processors of fresh milk and related dairy products in California. The company serves diverse markets in the food retail and ingredient sectors, but has been most well-known as the largest supplier of fresh milk and juice to K-12 school districts in Southern California for many years. Based in Ho Chi Minh City, Vietnam and founded in 1976, Vinamilk is the largest publicly-held company in Vietnam and one of the largest dairy companies in Asia. In 2015, Vinamilk reported total revenues of $1.8 billion, EBITDA of $450 million, and a market capitalization of $8.4 billion as of August 2016.
Marwit Capital acquired Driftwood Dairy in 2006, with several second and third generation members of the founding Dolan family remaining in key management positions. Under the leadership of CEO Partner Mac Berry, who joined the company shortly after the acquisition, the business was able to grow volumes and revenues by almost 50% over the investment period in a relatively flat overall U.S dairy market, and build an attractive platform for Vinamilk’s global expansion.
“This was truly one of the most intriguing transactions that I have had the pleasure of being involved with in more than 20 years in private equity, and I believe one of the most significant transactions to date involving the acquisition of a U.S. business by a leading company based in Vietnam,” said Chris L. Britt, Marwit Managing Partner. Added Mr. Britt “Vinamilk is a really fabulous company, with world-class management, and plans to be a $3 billion business within a few years. We could not have found a better partner for the next 100 years of Driftwood Dairy.” Added Marwit Partner David Browne, “We didn’t expect that we would find the next owner of Driftwood Dairy almost 8,000 miles away, but I am sure we found the right one, and the future is bright for both companies.”
Marwit is a private investment firm that partners with entrepreneurs, family-owned businesses, and management teams to build industry leading companies across diverse industries in the lower middle market. Founded in 1962, Marwit is one of the oldest private equity firms in the Western U.S. and is currently managed by three partners, Chris Britt, Matthew Witte and David Browne. The firm has completed over 60 buyouts, recapitalizations and growth equity investments in its history, and is actively seeking new investments in across the U.S. in diverse industry sectors.
Chris L. Britt