Consumers are always looking at how to improve their lifestyles whether it’s diets or exercise routines. And while some private equity firms invest in market cycles, others bet on longer-term trends, especially when it comes to people’s health. Add Los Angles-based food-focused PE firm Butterfly Equity to the list.
On Friday, Butterfly said it acquired Milk Specialties Global from American Securities LLC. Based in Eden Prairie, Minn., Milk Specialties is a manufacturer of food and beverage ingredients, such as milk and liquid whey, for the health and wellness and food sectors. The company claims that its human nutrition segment is the largest producer of whey protein isolate in the world.
Healthy food and beverage companies are always attractive to investors in any economic climate because people are always watching what they eat and that is not going to change anytime soon.
Highpost Capital, based in West Palm Beach, Fla., is another private equity firm focused on this space.
“Everybody I know is just clearly looking. ‘Can I improve the way I eat? Can I improve the way I live my life? Can I destress?’ There are just so many things that are happening and we find companies that can affect that change,” HighPost founder and CEO David Moross, previously told Mergers & Acquisitions.
These days it is easier for consumers to eat healthier because they have more research tools at their disposal. That is whether reading ingredients on a food label or reviews on Amazon, they have more choices in what to buy.
And while some market trends are just fads, leading a healthy lifestyle is not.
– Demitri Diakantonis
