Dairy Farmers Agrees to Buy Dean Foods for $425 Million

America’s biggest milk producer, Dean Foods, could be soon purchased for $425 million.

Dairy Farmers of America has agreed to buy the company and will also assume Dean’s liabilities as part of the deal to acquire 44 of the company’s facilities, as well as other assets.

There may still be higher bids however during Dean Foods’ bankruptcy process. Dean had filed for Chapter 11 bankruptcy this past November as it struggled to attract consumers who have instead turned to nondairy milk or private-label products.

“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,” Dean Foods CEO Eric Beringause stated.

If approved by the bankruptcy court, the agreement would make the Dairy Farmers of America the stalking horse bidder.

This means the transaction would be subject to receiving higher or better offers while the company is in bankruptcy.
Dean Foods is also talking with other buyers interested in plants and assets not included in the deal with the co-op.

The Department of Justice will also have to approve the deal.