Today, May 6, Butterfly revealed a significant restructuring within its portfolio company, Bolthouse Farms, by dividing it into two separate companies: Bolthouse Fresh Foods and Generous Brands.
This strategic move, which aims to enhance growth and operational efficiency, involves Bolthouse Fresh Foods continuing the legacy of supplying fresh carrots, while Generous Brands will focus on premium fresh beverages and salad dressings.
The separation is supported through distinct debt recapitalizations for each entity, promising more targeted strategies and leadership.
In 2019, Butterfly acquired Bolthouse Farms from Campbell Soup Company in a carveout transaction and has since driven notable growth exceeding 30%. The acquisition of Evolution Fresh from Starbucks in August 2022 was a strategic expansion, combining two leading beverage brands.
This latest organizational change allows Bolthouse Fresh Foods to concentrate on its core offerings of fresh produce, while Generous Brands will aim to innovate and expand in the beverage sector.
Butterfly Co-Founder and Co-CEO, Adam Waglay, stated, “The division into Bolthouse Fresh Foods and Generous Brands aligns with our initial investment vision and prepares both companies for future success in their respective markets.”
Jeff Dunn, formerly CEO, has been promoted to Executive Chairman of both companies, with Timothy Escamilla and Steve Cornell taking on CEO roles at Bolthouse Fresh Foods and Generous Brands, respectively.
This structural transformation is not only a reflection of Butterfly’s commitment to specialization and value creation but also sets the stage for each company to pursue its unique growth strategy effectively. Bank of America and American AgCredit facilitated the financial aspects, while legal guidance was provided by Kirkland & Ellis.
