Sky Island Capital Acquires Farmdale Creamery, Inc.

Aug 22, 2024

Dallas, Texas – August 22, 2024 – Sky Island Capital (“Sky Island”), a Dallas-based lower middle market private equity firm, is pleased to announce that it has made a majority investment in Farmdale Creamery, Inc. (“Farmdale” or “the Company”) alongside the Company’s founding families. Founded in 1953 and headquartered in San Bernardino, California, Farmdale is a leading producer and distributor of cultured dairy products, including sour cream, cheese, buttermilk, and yogurt. The Company offers its signature sour cream in many varieties, including Mexican and Central American styles, as well as natural, reduced fat, non-fat, and imitation alternatives. With state-of-the-art infrastructure and recipes developed over the Company’s 70+ year history, Farmdale maintains a market leading position amongst West Coast sour cream producers.

“We are thrilled to continue our momentum with our second platform investment in Sky Island’s second fund” said Cord Walker, a Sky Island Principal. “Under the ownership of the Shotts and Sibilio families, Farmdale has become one of the largest producers of sour cream in Southern California. The Company’s commitment to its customers over the past 70 years has created strong relationships that have enabled the Company to succeed. We are proud to partner alongside the founding families as Farmdale continues on its growth trajectory.”

Farmdale maintains 25+ year relationships with major food manufacturers, food service distributors, and grocery customers who value the Company’s consistent delivery of fresh, high quality, and great tasting products. Farmdale’s broad product offering, range of retail and foodservice pack sizes, and private labeling options ensure the Company can meet each customer’s unique specifications and needs. The Company serves customers of all sizes across the U.S. and Canada.

“When we first met the Sky Island team, we felt an immediate fit. We chose to partner with them because of their commitment to maintain Farmdale’s culture of excellence,” said Michael Shotts, President and Co-Owner. “We’re confident that with the support of Sky Island’s team, the Company can realize significant growth and continued success while maintaining its legacy values of quality, consistency, and customer service. We’re excited to see what this next phase holds for the Company.”

Farmdale Creamery is Sky Island’s second platform investment in its second fund.

 

About Sky Island Capital

Sky Island Capital is a lower middle market private equity firm headquartered in Dallas, Texas that focuses exclusively on partnering with privately held manufacturing companies in North America. Sky Island was born out of the desire to work alongside entrepreneurs and family business owners to serve as a resource and strategic partner. Sky Island focuses on situations where it can draw upon its deep operational and management experience to support senior management in driving significant value creation through operational and strategic partnership.

About Farmdale Creamery

Founded in 1953, Farmdale Creamery Inc. (www.farmdale.net) is one of the largest producers of sour cream on the West Coast. The Company operates out of a single plant in San Bernardino, California. Through continuous investment and an emphasis on process improvement, the Company has developed state-of-the-art capabilities and the capacity to deliver rapid speed-to-market for customers both large and small. Farmdale offers a wide range of unique sour cream styles, as well as a variety of cheeses, buttermilk, and yogurt. Since the Company was founded over 70 years ago, it has established a reputation as a leading provider of the finest and freshest dairy products available, cultivating entrenched relationships with key food manufacturing and foodservice customers.

For more information, please contact Jack Waterstreet or visit the website listed below:

Jack Waterstreet

Managing Partner

[email protected]

Recent News

Sky Island Capital Closes Second Fund Above Target at $300 Million

Sky Island Capital Closes Second Fund Above Target at $300 Million

Dallas, Texas – January 16, 2025 – Sky Island Capital (“Sky Island” or the “Firm”), a Dallas-based lower middle market private equity firm, today announced the final close of its second private equity fund, Sky Island Capital II LP (“Fund II”). Fund II exceeded its...

Sky Island Capital Team Announcements

Sky Island Capital Team Announcements

Dallas, Texas – October 2, 2024 – Sky Island Capital (“Sky Island”), a Dallas-based lower middle market private equity firm, is pleased to announce the promotion of Cyrus Hamid-Khani to Vice President, recognizing his extraordinary contributions and dedication to the...

Sky Island Capital Portfolio Company Acquires Curdtown

Sky Island Capital Portfolio Company Acquires Curdtown

Dallas, Texas – August 30, 2024 – Sky Island Capital (“Sky Island”), a Dallas-based lower middle market private equity firm, is pleased to announce that its portfolio company, Kaufhold’s Kurds, Inc. (“Kaufhold’s), has acquired Curdco, Inc. dba Curdtown (“Curdtown” or...