American dairy cooperative Dairy Farmers of America (DFA) recently won a bid in a court-supervised auction to purchase “a substantial portion” of Dean Foods Company’s assets, the company announced in a March 31 release. The auction was held as part of Dean Foods’ Chapter 11 process.
Under the terms of the deal, DFA will pay $433 million to acquire 44 fluid and frozen facilities. During the sale process, Dean Foods also named Prairie Farms Dairy as the winner of assets, rights, and properties for eight facilities, two distribution branches, and other assets. Mana Saves McArthur LLC won a facility in Miami, FL and Producers Dairy Foods will purchase a site in Reno, NV. Dean Foods’ Uncle Matt’s business will be sold to Harmoni Inc.
“We are pleased that through these transactions, substantially all of our processing assets will continue to operate as diaries 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,” Dean Foods President and Chief Executive Officer Eric Beringause said in a statement. “We are committed to completing these transactions as quickly as possible, and to ensuring a smooth transition for our customers.”
The auction was conducted under the supervision of the US Bankruptcy Court for the Southern District of Texas. On April 3, a court hearing will be held to approve the transactions. Dean Foods expects the sales to close by the end of this month.
DFA and Dean Foods signed an purchase agreement for the assets this February, Powder & Bulk Solids reported. The bankrupt firm revealed that it was in “advanced discussions” with DFA on the sale last November. The company filed for bankruptcy after a downturn caused by weak demand for milk.