Dive Brief:
- Chobani will borrow $750 million from private equity firm TPG Capital in a complex deal that points toward an initial public offering.
- News reports say the debt deal includes warrants that TPG can convert into equity. That could give TPG as much as a 35% stake in the nation's largest seller of Greek-style yogurt. TPG will also get positions on the board, though reports differ on the number of seats.
- The loan comes just days after Chobani announced an ambitious plan to add new products.
Dive Insight:
The deal signals a turning point for Chobani -- and we're not talking about new products, market expansion, or an IPO.
Even without an equity stake, TPG appears to have taken the helm at the yogurt company. After the loan was announced, TPG issued a press release outlining its plans for the company. Those plans, in brief, say the company will model its approach on that of retailers J. Crew Group (owned by TPG) and Neiman Marcus Inc. (formerly owned by TPG).