DALLAS – Rise Run Capital LLC (“Rise Run”) announced its acquisition of Lone Star Organic Dairy (“LSOD”), on November 23, 2022. Located in Wills Point, Texas, just 50 miles east of Dallas, LSOD is the largest organic diary in North Texas.
Since its greenfield development in 2015, the dairy has practiced environmental sustainability and will continue to do so going forward. Its proximity to milk processors, on-site feed production, and investment in recycling programs, allow Lone Star Organic Dairy to currently achieve a net zero carbon footprint. As a USDA certified organic dairy, the farm operates without pesticides, fertilizers, or antibiotics, and cows graze freely when weather permits. Rise Run is pursuing additional sustainability initiatives to further enhance its positive environmental impact.
“Lone Star Organic Dairy exemplifies Rise Run’s portfolio company characteristics including an incredibly strong management team, consistent financial performance, material competitive moats, favorable industry trends and an emphasis on conscious capitalism.” said Corbin Cook, Rise Run Co-Founding Partner. “It has maintained a strong commitment to sustainability, and to furthering the movement toward organic milk. Given the highly processed so-called plant-based “milks” with added fillers are not as natural as one would believe, we see a clear customer trend back to real organic milk for numerous health reasons. We are excited to be a part of the Lone Star story.”
As part of the transaction, a best-in-class management team is set to guide the operation. Incoming President, Jamie Kulesa, has over 30 years of experience in the dairy business across all functional areas. Most recently, he ran a multi-site organic dairy operation in New Mexico with more than 6,000 head of cattle. He will lead Lone Star Organic Dairy using a data-driven approach to cow monitoring and feed management.
“We are grateful to partner with such a strong management team with this level of industry experience. They are passionate about organic dairy and our customers, intent on doing the little things with excellence, and we look forward to seeing what they can accomplish” said Alex Swanston, Rise Run Co-Founding Partner.
The transaction closed with financing provided by First Financial Bank of Cincinnati, Ohio. Legal counsel was provided by Hallet & Perrin, P.C., led by Bruce Hallett. Tax consulting was provided by the Bonadio Group. Financial consulting was provided by Bennett Thrasher LLP, led by Dane Harris.
About Lone Star Organic Dairy
Lone Star Organic Dairy was founded in 2015 as a greenfield development to service Dallas dairy processing facilities. It has grown to become the largest organic dairy in North Texas. The dairy sits on 1,850 acres of land just 50 miles east of Dallas, located in close proximity to a high concentration of organic dairy processing facilities. The available land gives Lone Star Organic Dairy the opportunity to grow much of its feed on-site in an organic and environmentally friendly manner, reducing environmental impact and increasing efficiency.
About Rise Run Capital
Rise Run Capital is a Dallas-based private equity firm which invests capital in middle market companies with EBITDA of $2 to $15 million, strong management teams, attractive and defensible market positions and minimal customer and supplier concentrations. Rise Run focuses on consumer products manufacturing, healthcare, and service companies. Rise Run partners pride themselves on being collaborative team members along with founders and current management teams.
This communication is for informational purposes and is not intended to be, nor should it be construed or used as an offer to sell, or a solicitation of any offer to buy shares or limited partnership interests in any investments managed by Rise Run Capital.
