Private equity firm, TPG has announced a US$750m investment in New York based Greek yoghurt maker, Chobani in order to help the business expand its share in foreign markets.
Although the deal with TPG is in the form of a loan, The New York Times reports that TPG will also be receiving warrants that could potentially allow it to obtain up to a 35% equity stake in Chobani.
It is reported that the warrant will convert to equity should Chobani reach specific goals, with the primary goal being that of an initial public offering, or other sale.
According to the founder, chairman and chief executive of the yoghurt company, Hamdi Ulukaya, the investment will enable the company to create more innovative products and expand into new markets.
"Chobani has experienced tremendous growth and leads one of the most exciting aisles in the supermarket,” Ulukaya said in a statement. “This investment gives us additional resources to build on our momentum, fund our exciting new innovations and reach new people. Most importantly, it positions us to further deliver on our vision to provide better food for more people."
"TPG's commitment represents a belief in our vision and further validates the strength of our brand and business. We're excited to embark on this next phase with TPG," he said.