The separation will accelerate value creation and growth, with Bolthouse Fresh Foods specializing in premium fresh carrot production and Generous Brands focusing on premium fresh beverages
LOS ANGELES — Butterfly announced the separation of its portfolio company Bolthouse Farms into two standalone entities: Bolthouse Fresh Foods and Generous Brands. Bolthouse Fresh Foods will carry on the century-old legacy of Bolthouse Farms as a leading supplier of fresh carrots to retailers across North America, with nearly 700 million pounds of carrots sold annually. Generous Brands will encompass the market-leading premium fresh beverage and salad dressing businesses of Bolthouse Farms and Evolution Fresh.
Butterfly acquired Bolthouse Farms from Campbell Soup Company (NYSE: CPB) in a carveout transaction in 2019. Butterfly has implemented numerous strategic initiatives that have driven topline growth in excess of 30% while re-establishing the company as a partner of choice to produce departments across North America. Bolthouse Farms also acquired Evolution Fresh from Starbucks in August 2022, uniting two powerhouse beverage brands with complementary product offerings, channel penetration and consumer bases.
This separation is being facilitated by way of separate debt recapitalizations of each business, enabling Bolthouse Fresh Foods and Generous Brands to continue onward as two separate companies with purpose-built strategies and leadership teams. Butterfly expects these transactions to enable accelerated growth via increased flexibility for investment in capabilities as well as acquisitions.
“We’re incredibly excited to announce the separation of Bolthouse Farms into two distinct industry-leading platforms, which will further propel the growth of these businesses and their ability to outperform for customers throughout the world,” said Adam Waglay, Co-Founder and Co-CEO of Butterfly. “This separation was always part of our investment thesis, and we have recruited best-in-class leadership teams which are strategically aligned to each business so that Bolthouse Fresh Foods can focus on delivering high quality, fresh produce with excellent service and Generous Brands can become a strong, consumer-centric business with superior fresh beverage brands.”
Butterfly Operating Partner Jeff Dunn has been promoted from CEO to Executive Chairman of both companies, while two veteran food industry executives were brought in to serve as the respective go-forward CEOs of the companies. Timothy Escamilla, former President of Dole Fresh Vegetables, has been appointed CEO of Bolthouse Fresh Foods, while Steve Cornell, former President of Fresh, Beverages and Desserts at The Kraft Heinz Company, has been appointed CEO of Generous Brands.
“Bolthouse Fresh Foods remains dedicated to nourishing people’s lives by providing high-quality, nutrient-dense products that continue to thrive in today’s dynamic marketplace,” said Timothy Escamilla, CEO of Bolthouse Fresh Foods. Timothy joined Bolthouse Fresh Foods as CEO in May 2023 with 30 years of experience in the produce industry across leading companies such as Dole, Tanimura & Antle, Ready Pac Foods and more.
“Generous Brands is an exciting consumer-centric platform, with iconic and fresh beverage brands,” said Steve Cornell, CEO of Generous Brands. “This transaction will enable Generous Brands to meet the needs of more consumers through more innovation, new investments in our business, and acquiring complementary brands to take our platform to its full potential.” Steve joined Generous Brands as CEO in January 2024, bringing with him over 15 years of experience at Kraft Heinz, having led globally recognized brands such as Heinz, Philadelphia and Capri-Sun, among others.
“This separation is proof that the future of value creation within private equity is grounded in deep operational expertise and transformation through specialization, and we could not be more appreciative of the amount of work, creativity and collaboration that went into this from all teams,” said Jeff Dunn, Executive Chairman of Bolthouse Fresh Foods and Generous Brands and Operating Partner of Butterfly. “It’s been amazing to watch the two entities develop their own unique cultures during the transition, and we are proud of the robust teams we have built across the companies. By separating, each business is now unleashed to drive its own unique growth strategy to ultimately deliver more fresh, healthy food for more people.”
The debt recapitalizations were led by Bank of America and American AgCredit. Kirkland & Ellis advised Butterfly on legal matters in connection with the transaction.
About Butterfly
Butterfly is a Los Angeles, California-based private equity firm specializing in the food sector, spanning the entire food value chain from “seed to fork” via four key segments: upstream & processing, B2B service providers, multi-site and branded goods. Butterfly manages over $4 billion of assets to date and aims to generate attractive investment returns through deep industry specialization, a disciplined and data-driven investment process and a hands-on approach to portfolio transformation. For additional information about Butterfly, please visit its website at www.bfly.com.
