GOT MILK?

In 1915, Peter Oberweis began selling excess milk from his dairy cows to his neighbors in Kane County. By 1927, business was booming, and he founded Oberweis Dairy. During the Great Depression, Peter’s son Joe dropped out of high school, eventually taking over the business and running it through the 1950s. Subsequent generations led the company into the 21st century.

Headquartered in Aurora, the well-known brand of dairy products such as milk, ice cream, and cheese is now ubiquitous in grocery stores throughout the Midwest. Oberweis Dairy also operates a chain of dairy and ice cream stores; a chain of That Burger Joint restaurants; and a home delivery service featuring milk delivered in its signature glass bottles.

Thousands of customers now rely on Oberweis delivery to bring milk and other dairy products to their doorsteps—a service that was initially conducted via a horse and milk float.

Oberweis remained under family control up until April of this year when after a series of challenges, the company filed for bankruptcy. Winnetka-based, investment firm Hoffmann Family of Companies’ Osprey Capital submitted the winning bid for Oberweis and the $21.25 million transaction was approved by the courts on June 5. The Hoffmann Family of Companies has stated their intent to both maintain and expand the brand, including opening more stores.

“We’re grateful to our employees and customers for standing by us during this difficult time,” says Geoff Hoffmann, co-CEO of Hoffmann Family of Companies. “With new financial backing, Oberweis Dairy is poised to continue its legacy as the most trusted name in dairy and beyond.”

The company says plans are already underway to enhance production capabilities and streamline operations in Oberweis Dairy’s manufacturing facilities.

Immediate improvements are expected in select locations, including brighter stores and an expanded product selection. The company will soon announce additional Chicago area market locations and other expansions where Hoffmann-owned companies operate.

Notably, there are no plans to close existing locations or make substantial cuts to the business, and the Oberweis Dairy brand name will remain intact.

“Oberweis is primed for growth with the support of Hoffmann Family of Companies,” says Adam Kraber, President of Oberweis Dairy. “Our customers can look forward to exciting improvements throughout the summer and fall.”

Hoffmann Family of Companies, one of the largest family offices in the world, is a multi-vertical, family-owned private equity firm consisting of more than 100 national brands and employs 9,000 global employees with businesses located in 30 countries and 250 locations around the world. Hoffmann Family of Companies’ verticals include aviation, agriculture, financial services, hospitality, business and professional services, industrial, manufacturing, marine, media and marketing, real estate and transportation.

It also has a history in the dairy business. Its founder, David Hoffman, grew up on a dairy farm in Missouri, so the Oberweis purchase represents to some extent a return to the family’s roots.

Hoffman Family of Companies specializes in acquiring founder-led companies which it says positions it to provide capital for growth and improvements. Most of the companies it acquires continue to be led by their founders, including second and third-generation family leaders. In addition to Oberweis, other recent acquisitions include dinner cruise leader Sip n’ Sail and Sonoma/Napa-based Pure Luxury Transportation.

While Nelson Algren referred to Chicago as the “hog butcher to the world” in his famous poem “Chicago” due to the city’s history and its stockyards, it also has a rich history in the dairy industry. A number of dairy companies, like Oberweis, were founded a century ago and carved out their own neighborhood territories for milk distribution. The Overweiss purchase, given the company’s history, continues that tradition.

“The Oberweis acquisition aligns with our core investment philosophy: Invest in good businesses, good properties, good people— all with the potential to be better,” says Hoffmann. “We eagerly anticipate delivering smiles to customers and employees for years to come.”

For more information and news about Oberweis Dairy, visit oberweis.com.