The Dairy Farmers of America has struck a $425 million deal with Dean Foods Co. to buy most of its plants following Dean Foods’ bankruptcy filing last November, reports The Wall Street Journal. However, before it is official, the deal requires approval of the bankruptcy court and the U.S. Department of Justice.
“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,” said Eric Beringause, Dean’s chief executive.
The proposal from Dairy Farmers of America also includes Dean’s Mexican subsidiaries and its ownership interest in a distribution venue with organic dairy cooperative Organic Valley. In addition, Dean has committed to paying the cooperative a $15 million breakup fee if it accepts a rival proposal. Full Story (Subscription Required)
Related: Dean Foods Files for Chapter 11 Bankruptcy; Dean Foods Leaves International Dairy Food Association.
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