MILWAUKEE – Borgman Capital announced it acquired Dairyfood USA to merge the specialty processor and smoked Gouda supplier with Gilman Cheese Corporation.

Terms of the deal were not disclosed.

Dairyfood USA, based in Blue Mounds, Wis., makes extended shelf-life cheese products. With the acquisition, Borgman Capital can expand the product mix and production capacity for its platform portfolio company, Gilman Cheese, which is a developer, manufacturer and private labeler of premium, clean label, processed cheeses.

"The people, products and legacy of Dairyfood USA offer a wealth of benefits to Gilman Cheese Corporation,” said Sequoya Borgman, founder and managing director of Borgman Capital. “We are excited about the synergies and growth opportunities ahead. We are proud to bring together two leading cheese processors in our home state and continue to support the communities of Blue Mounds and Gilman, Wisconsin.”

The private label products Dairyfood USA makes include smoked links and loaves, snack wedges, portion control cups, dips and spreads, cut bars and non-dairy products. Its products are sold under brand names including Glacier Ridge Farms, Queso de Casa and Sonoma Jacks. Dairyfood USA’s customers include retail, foodservice, transportation and airlines and gift pack suppliers.

“Throughout the selling process, it became distinctly obvious that Borgman Capital was the right choice to lead Dairyfood USA in its next chapter,” said Daniel Culigan, president and chief executive officer of Dairyfood USA. “The professionalism, honesty and genuine respect for our team and culture is what set them apart from other buyers. I am confident that the future is extremely bright for Dairyfood USA and Gilman Cheese.”

Borgman Capital shared that after Culigan’s planned retirement, Gilman president David Delgado will oversee integration of the organization alongside Dairyfood USA and Gilman management teams. Dairyfood USA and Gilman currently employ 149 and 184 employees, respectively.

Gilman’s processed cheeses are pasteurized and blended to achieve longer shelf lives. Its products can be found in retail, grocery and industrial channels, as well as in schools and gift packs and on airlines.