Chobani announced Wednesday that it has secured a $750 million investment from private equity firm TPG Capital. Chobani is the leader in Greek-style yogurt in the United States. It’s revenue is more than $1 billion last year. According to Dealbook, the six potential investors showed interest in doing a deal with the company, whose upstate New York production plants have been a boon to the regional economy. TPG is receiving warrants that could convert into an equity stake worth as much as 35 percent in the yogurt maker if it achieves certain milestones, such as an initial public offering or other sale. TPG’s investment is being packaged as a second-lien loan, putting the private equity firm behind other creditors in case of a default.
The team of Kirkland & Ellis led by corporate partners Michael Movsovich and Constantine Skavelis, debt finance partner Andres Mena represented Chobani in the contract. Hamdi Ulukaya, Chobani’s founder brought Kirkland on in October 2012 to protect him against a suit brought by his former wife, who claimed ownership of a large share of the company. Earlier this month his ex-wife accused him of stealing his yogurt recipe from rival Fage. Ropes & Gray represented TPG. The Ropes team included private equity partners Carl P. Marcellino and R. Newcomb Stillwell and debt finance partner Alyson Allen.
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