Borden Dairy will be brought out of bankruptcy by a pair of investment firms, one of which is a former owner.

Capitol Peak Partners and KKR & Co. won an auction for Borden, the nation’s second-largest processor of liquid milk, after the company declared bankruptcy early in January. Terms were not disclosed.

KKR is a previous owner of Borden, having bought it for $2 billion and taken it private in 1995. KKR and other lenders hold a $175 million loan to Borden, consideration of which formed part of the winning bid.

Capitol Peak, the senior partner in the venture, is headed by Gregg Engles, a former head of Dean Foods. Borden tried unsuccessfully earlier this year to merge with Dean, which has also declared bankruptcy. Most of Dean’s assets have been bought by Dairy Farmers of America.

The sale must still be approved by a bankruptcy court in Delaware, with a hearing scheduled for June 18.