Borden (company)

Borden, Inc.
Company type	Public (formerly)
Industry	Food, beverages, consumer goods, industrial products
Founded	January 1, 1857; 169 years ago in Connecticut, United States
Founder	Gail Borden Jr.
Defunct	2005
Fate	Divested and liquidated by Kohlberg Kravis Roberts
Headquarters	Columbus, United States
Area served	United States, Canada (historically)
Key people	Gail Borden Jr. (founder)
Products	Dairy products, pasta, sauces, baked goods, snacks, processed cheeses, jams, ice cream, adhesives, plastics, resins, wallpaper materials
Parent	Kohlberg Kravis Roberts (1995–2005)

Borden, Inc. stood as a prominent American manufacturer specializing in food, beverages, consumer goods, and industrial products, once recognized as the leading U.S. producer of dairy and pasta items. Its food division, known as Borden Foods and based in Columbus, Ohio, concentrated on a variety of products including pasta and sauces, baked goods, snacks, processed cheeses, jams, and ice cream. Among its notable brand portfolio were Borden Ice Cream, Meadow Gold milk, Creamette pasta, and Borden Condensed Milk. The industrial branch dealt with the production and sale of adhesives, plastics, resins, and wallpaper materials. By 1993, food-related products accounted for 67% of the company’s total revenue. Additionally, Borden owned well-known brands such as Elmer's and Krazy Glue.

After experiencing significant financial setbacks in the early 1990s and undergoing a leveraged buyout led by private equity firm Kohlberg Kravis Roberts (KKR) in 1995, Borden proceeded to divest numerous divisions and brand assets. KKR terminated Borden’s food operations by 2001 and liquidated the remaining business units by 2005. Presently, the Borden dairy trademarks are utilized by Borden Dairy for milk products and Dairy Farmers of America for cheese offerings.

Founding

The company was established in 1857 by entrepreneur Gail Borden Jr. in Connecticut under the name "Gail Borden Jr., and Company," initially focusing on the production of condensed milk. Facing financial difficulties early on, it attracted investment from Jeremiah Milbank—partner at I. & R. Milbank & Co.—who acquired a 50% stake in the business. In 1858, it was renamed New York Condensed Milk Company and flourished by supplying condensed milk to Union troops during the Civil War.

Borden was a pioneer in marketing processed milk to consumers starting in 1875 and introduced glass milk bottles a decade later in 1885. The company expanded its product line with evaporated milk in 1892 and extended operations into Canada by 1895.

Growth

In 1899, the firm adopted the name "Borden's Condensed Milk Company." A legal ruling in 1912 permitted a competitor to use the Borden name for ice cream products; however, by 1919 it rebranded as the Borden Company and pursued rapid expansion through acquisitions of dairy farms, ice cream producers, cheese manufacturers, and mincemeat processors. Utilizing its extensive cattle resources, Borden diversified into rendering operations and adhesive production. During World War II, it became a leader in manufacturing non-dairy creamer, instant coffee, and powdered food items within the United States.

By 1929, Borden transitioned into a holding company structure overseeing four subsidiaries: Food Products; Dairy Products; Ice Cream and Milk; and Cheese & Produce—later consolidated into divisions by 1936.

The fictional character Jane Ellison was introduced as a corporate spokesperson in 1929 to endorse products such as the "Magic Lemon Cream Pie," considered an early version of Key lime pie. In 1938, Borden encountered antitrust investigations but resolved these issues through a consent decree finalized in 1940.

Operations in Canada began with condensed milk production centered in Quebec and along the East Coast, with headquarters located in Montreal. Following the acquisition of City Dairy in Toronto in 1931, the Canadian headquarters relocated there. By the late 1970s, Canadian activities were phased out through sales to Agropur (Quebec) and Silverwood Dairy (Ontario).

During the 1950s, Borden broadened its business scope to include printing inks, fertilizers, and PVC plastics manufacturing—accounting for approximately 7% of U.S. raw PVC output by 1961. By 1968, its international chemical and petroleum ventures were unified under Borden Inc. International. The company held ownership of Danish beverage firm Cocio from 1976 until 1999.

In 1987, Borden divested segments of its chemical operations via a public stock offering named Borden Chemicals & Plastics Operating Limited Partnership (BCPOLP), while maintaining a minority ownership position.

Borden Food

When Borden, Inc. transitioned into a holding company in 1929, its food products segment was separated as Borden Food Corporation, only to be reintegrated thirteen years later. During the 1950s, Borden broadened its portfolio through several acquisitions, including Wyler's (known for bouillon and powdered beverages), ReaLemon (lemon juice), Cracker Jack (which was sold to Frito-Lay in 1997), Campfire marshmallows, Wise Foods (snack items), and Bama (jams and jellies).

After scaling back operations in the 1970s, Borden resumed its expansion in the 1980s by acquiring Guys Snack Foods in 1979 and Prince pasta, capturing approximately 30% of the U.S. pasta market. The company further expanded in 1986 by purchasing Beatrice Foods' dairy division, which included Meadow Gold. However, shareholders later expressed dissatisfaction with the company's downturn attributed to poor management, excessive debt from acquisitions, and ongoing restructuring efforts.

Demise

From 1991 to 1993, Borden experienced considerable financial setbacks. An unsuccessful restructuring attempt in 1991 combined with a refusal to reduce prices during a decline in milk prices in 1992 resulted in a significant loss of market share. Despite selling off nearly one-third of its business units by 1993, the company found it difficult to divest its snack food divisions. Facing financial hardship, Borden was acquired by the private equity firm Kohlberg Kravis Roberts (KKR) in 1995.

KKR expedited the sale of various assets but was unable to return Borden to profitability. In 1997, Borden/Meadow Gold Dairies was sold to Southern Foods, which was controlled by Mid-America Dairymen (later known as Dairy Farmers of America). While Borden retained ownership of the Elsie the Cow trademark, it licensed its use. Southern Foods was subsequently acquired by Suiza Foods (now Dean Foods), which currently owns these dairy operations; meanwhile, Dairy Farmers of America maintains ownership of Borden cheese.

In 1997, KKR shifted Borden’s focus toward pasta and sauces; however, this approach did not succeed. By 2001, Borden divested its pasta brands to American Italian Pasta Company and New World Pasta, while sauce and soup lines—including Wyler's—were sold to H. J. Heinz Company. The last remaining food product line, It's Pasta Anytime, was sold to Kraft Foods, leading to the closure of Borden’s food division.

With only its chemical operations left, KKR merged Borden, Inc. into Borden Chemical, Inc. in 2001 and renamed it to highlight its exclusive focus on chemicals.

In 2004, KKR sold Borden Chemical to private equity firm Apollo Global Management, which combined it with Resolution Performance Products and German company Bakelite AG to create Hexion Specialty Chemicals. This consolidation marked the end of Borden as an active operating entity; only brand names and spin-offs persisted. Hexion held control over the Elsie trademarks until 2014 before transferring them to Mexico’s Grupo Lala.

Borden formerly operated a chain of ice cream shops known as Borden's Ice Cream, with just one remaining location under local ownership in Lafayette, Louisiana.

Legacy

The Borden name along with its mascot Elsie the Cow continues to be utilized by several companies, highlighting enduring brand recognition. Among these is Borden Dairy, based in Dallas, Texas, which remains a prominent dairy distributor. Additionally, Eagle Family Foods Group LLC employs the Borden brand and Elsie imagery for its Eagle Brand canned milk products.

The historic Borden Buildings in Toronto, originally constructed for Borden Canadian dairy operations established in 1900 by Walt Massey as City Dairy, have been repurposed for use by the University of Toronto, demonstrating adaptive reuse of former corporate facilities.

Former product lines

Anthony's brand pasta
Bama jelly and jam
Bennetts condiment sauces
Borden brand cheese
Borden eggnog beverage
Campfire marshmallow treats
Classico pasta sauces
Cracker Jack snacks
Creamette macaroni
Cremora non-dairy coffee creamer
Drake's branded cakes
Eagle Brand products
Elmer's adhesive glues
Hemo malted chocolate beverage
Elsie Stix construction toys
It's Pasta Anytime! ready meals
Kava coffee products
Klim powdered milk
Krylon spray paints by Sherwin-Williams
Luxury brand pasta
Meadow Gold dairy milk
Mystik Tape Corporation products
Mrs. Grass pasta and soup mixes
Nevada ice cream brand
None Such mincemeat products
Pennsylvania Dutch pasta varieties
Prince brand pasta
R&F pasta line
ReaLemon lemon juice concentrate
Ronco pasta products
Snow brand chowder soups
Starlac powdered milk formula
Vimco Macaroni brand
Wise snack foods
Wyler's soups and soft drink mixes

Sources

"Apollo Acquires Borden Chemical for $649 Million." New York Times. July 7, 2004.
Buchanan, Doug. "Borden Foods Closes Operations, Divests Last Assets." Business First of Columbus. August 27, 2001.
International Directory of Company Histories, Volume 22. Farmington Hills, Michigan: St. James Press, 1998.
Jensen, Elizabeth. "Crackerjack Strategy? Borden Plans to Divest Some Food Brands." Wall Street Journal. March 21, 1997.

External links