Dairy Farmers of America to acquire majority of Dean Foods

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Dairy Farmers of America to acquire majority of Dean Foods

Dairy Farmers of America has been named the winning bidder for most of the Dean Foods operations.  Dean Foods issued a statement saying DFA will acquire 44 of the Dean Foods fluid and frozen dairy facilities for 433-million dollars as part of a bankruptcy sale.

Illinois-based Prairie Farms Dairy was the high bidder for eight dairy facilities, two distribution branches, and other unnamed assets for 75-million in cash.

Mana Saves McArthur, LLC, will acquire facilities in Miami, Florida and Producers Dairy Foods will buy the Reno, Nevada plant.  Harmoni, Inc. has been designated as the winning bidder for the Uncle Matt’s business line.  Industrial Realty Group, LLC will buy the Meadow Gold Hawaii operations and will be partnering with Hawaii-based 8 Cow Dairies to manage operations.

Dean Foods President and CEO Eric Beringause says the company is pleased that through these transactions, substantially all of the processing assets will continue to operate as dairies and will be owned by their dairy farmer partners.

DFA was planning to buy all of the Dean Foods assets but pulled back from that plan in mid-March to avoid additional litigation with creditors.

Southern Foods Group, doing business as Dean Foods filed for Chapter 11 bankruptcy relief last November.  A Texas judge will review the proposed sales during a hearing Friday.

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