Dean Foods Selling ‘Substantial’ Portion of Operation to Dairy Farmers of America

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Dean Foods Selling ‘Substantial’ Portion of Operation to Dairy Farmers of America

02/19/2020

Dairy Farmers of America will acquire 44 of the Dean Foods’ fluid and frozen facilities in a stalking horse bid, as well as the real estate, inventory, equipment, and all other assets necessary to operate them.

Food and beverage company Dean Foods is the largest processor and direct-to-store distributor of fresh fluid milk and other dairy and dairy case products in the United States. It counts more than 50 brands under its umbrella, including Land O Lakes, DairyPure, Alta Dena, Berkeley Farms, Country Fresh, Dean's, Friendly's, Garelick Farms, Lehigh Valley Dairy Farms, Mayfield, McArthur, Meadow Gold, Oak Farms, PET, T.G. Lee, Tuscan and more.

The Dallas, TX-based company has approximately 15,000 employees. It described the 44 facilities as being a “substantial portion” of its operations.

“We have had a relationship with DFA over the past 20 years, and we are confident in their ability to succeed in the current market and serve our customers with the same commitment to quality and service they have come to expect,” said Eric Beringause, president and CEO of Dean Foods.

The deal is subject to approval by the bankruptcy court on March 12. The deadline for other interested parties to furnish information to be considered a potential bidder for any or all of the stalking horse assets is March 31.

Dean Foods said it’s also in active discussions with parties interested in the plants and assets that are not included in the stalking horse assets. The deadline to furnish information to be considered a potential bidder for the plants and assets that are not subject to the DFA bid is also currently scheduled for March 31.

The deadline for potential bidders to submit a qualified bid for these plants or assets is April 13, and if qualified bids are submitted, an auction will be held on April 20.