Dairy Farmers of America (DFA) is now the winning bidder for a majority of Dean Foods’ business operations as part of the company’s Chapter 11 auction process.
“We ran a competitive auction process and are pleased to have reached these agreements, which we believe represent the best path forward for our stakeholders,” said Eric Beringause, president and CEO of Dean Foods.
DFA and Dean Foods reached an agreement in February before withdrawing the plan to have a more competitive bidding process. DFA will acquire the assets, rights, interests, and properties of Dean Foods’ 44 fluid and frozen facilities for $433 million.
“After many months of uncertainty regarding the future of Dean Foods, we are pleased to have been named the accepted bidder for a large portion of Dean’s assets,” says Monica Massey, DFA senior vice president and chief of staff. “Throughout this process, our main focus has always been, and continues to be, on maintaining milk markets and limiting disruption to the industry.
Prairie Farms Dairy will acquire eight processing facilities, tow distribution centers, and other assets for $75 million.
“Dean Foods has strong and long-standing relationships with DFA and Prairie Farms Dairy,” said Beringause. “We are pleased that through these transactions, substantially all of our processing assets will continue to operate as dairies and will be owned by our dairy farmer partners with the resources, experience and industry expertise to continue to succeed in the current market environment.
The agreement is subject to final approval during a hearing April 3.