Dairy-farmer cooperative agrees to buy Dean Foods for $425M
Dean Foods filed for Chapter 11 bankruptcy in November
National cooperative Dairy Farmers of America will buy a "substantial portion" of Dallas dairy producer Dean Foods, which filed for Chapter 11 bankruptcy in November, Dairy Farmers of America said Monday.
Dairy Farmers of America (DFA) is made up of 14,000 family farmers. The group is set to acquire 44 of Dead Foods' fluid and frozen facilities, plus other assets necessary to operate them.
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The deal will need to be approved at a bankruptcy court hearing on March 12 and can be finalized on March 31 after any other potential bidders have furnished information.
"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," Eric Beringause, Chief Executive Officer of Dean Foods, said in a statement.
Dean Foods said in November that the company expected to make a deal with DFA.
Dean Foods' portfolio includes brands like DairyPure, TruMoo and Land O'Lakes.