DFA has completed the acquisition of the assets, rights, interests and properties linked to 44 of the Dean’s fluid and frozen facilities
Dairy Farmers of America (DFA) has completed the acquisition of a substantial portion of assets and business from dairy processor Dean Foods.
In April, Dean Foods announced that DFA as the winning bidder to acquire its majority of operations following an extensive sale process and a competitive auction as part of its Chapter 11 process.
In November 2019, the company filed for Chapter 11 bankruptcy, as a result of the reduction in consumption of cow’s milk and an increase in demand for the plant milk.
Under the deal, DFA agreed to purchase a significant portion of Dean Foods’ business operations in a deal valued at around $433m.
Currently, DFA has completed the acquisition of the assets, rights, interests, and properties linked to 44 of the Dean’s fluid and frozen facilities.
Prairie Farms Dairy has also completed the acquisition of assets from Dean Foods
Separately, Prairie Farms Dairy has also completed the acquisition of the assets, rights, interests and properties related to eight facilities, two distribution branches and certain other assets from Dean Foods for $75m in cash.
Producers Dairy Foods has completed the acquisition of the facility in Reno of Nevada and Berkeley Farms trademark and related intellectual property from Dean Foods.
Dean Foods president and CEO Eric Beringause said: “We are pleased to complete these transactions, which maximize value for our stakeholders and will enable substantially all of our businesses to continue operating and serving customers across the country.”
Under the US Department of Justice’s (DOJ) approval of Dean Foods’ deal with DFA, the DOJ has entered into a consent decree with the DFA under which the department has committed to hold separate and divest the dairy processing plants situated in DePere of Wisconsin, Franklin of Massachusetts and Harvard of Illinois along with assets related to the operations at each plant.
Beringause has resigned from his role as president and CEO, upon closing of these divestments.
At the end of April, the company also completed the divestment of its Uncle Matt’s business to Harmoni, as well as its Hilo facility and related distribution branches on the Big Island, Kauai and Maui and a licence to the Meadow Gold Hawaii brand name and related intellectual property, to MGD Acquisition.
On the transaction, Davis Polk & Wardwell and Norton Rose Fulbright are acting as legal advisors to Dean Foods while Evercore is serving as its investment banker and Alvarez & Marsal is acting as its financial advisor.