Sector News

D.F.A. makes bid to acquire some Dean Foods assets

February 19, 2020
Food & Drink

Dairy cooperative Dairy Farmers of America (D.F.A.) has offered $425 million and the assumption of liabilities to acquire some of Dean Foods Co.’s assets. Dean Foods filed for Chapter 11 bankruptcy on Nov. 12, 2019, and the offer, if accepted, will designate D.F.A. as the stalking horse bidder in the sale of Dean Foods.

The offer is for 44 of Dean’s 57 fluid and frozen facilities, its direct-store delivery system and certain corporate and other assets. Other interested parties have until March 31 to submit information to be considered a potential bidder.

“As Dean is the largest dairy processor in the country and a significant customer of D.F.A., it is important to ensure continued secure markets for our members’ milk and minimal disruption to the U.S. dairy industry,” said Rick Smith, president and chief executive officer. “As a family farmer-owned and governed cooperative, no one has a greater interest in preserving and expanding milk markets than D.F.A. We are pleased that we have come to an agreement on a deal that we believe is fair for both parties.”

In addition to bankruptcy court approval, the transaction will require approval from the U.S. Department of Justice given the scale both D.F.A and Dean Foods have in the U.S. dairy and milk processing industries. In January, the Wall Street Journal reported that D.O.J. officials were discussing the potential impact of a D.F.A. and Dean Foods merger on dairy farmers and retailers.

“We have had a relationship with D.F.A. 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 c.e.o. of Dean Foods.

By Keith Nunes

Source: Food Business News

comments closed

Related News

September 25, 2022

Coca-Cola names new president of global ventures

Food & Drink

The Coca-Cola Co. has promoted Evguenia (Jeny) Stoichkova to president of global ventures, effective Jan. 1, 2023. Ms. Stoichkova joined Coca-Cola Bulgaria in 2004 and was most recently the president of the company’s Eurasia & Middle East division, a role she has held since 2021.

September 25, 2022

Perfect Day allies with Onego Bio to speed-up launch of animal-free eggs

Food & Drink

US-based Perfect Day, is partnering with Onego Bio, which specializes in creating animal-free eggs, aiming to accelerate the timeline to bring the eggs to the market. The business, with the use of its technology, plans to commercialize animal-free ovalbumin, the most abundant egg white protein extracted through precision fermentation.

September 25, 2022

EU fails on food waste: Report reveals bloc discards more than it imports

Food & Drink

Food waste costs the EU €143 billion per year (US$141.7 billion), with a report by Feedback EU raising the alarm of how it’s vital to reduce waste from farm to fork 50% by 2030 and the only way this will be achieved is by enforcing a mandatory directive forcing the food industry to do better and retailers to pay a tax of food waste.