Dean Foods concludes strategic alternatives review
The company to focus on go-forward strategy under new leadership to enhance long-term shareholder value.
On Sept. 6, Dean Foods Co. said its board of directors concluded its previously announced review of strategic alternatives.
Since February 2019, the board, in consultation with its financial and legal advisors, has been engaged in a comprehensive review of strategic alternatives, including a possible sale of the company. The board determined that the execution of its standalone operating plan under the leadership of Eric Beringause, who was appointed as president and CEO on July 29, 2019, will provide the best opportunity to enhance long-term shareholder value, Dallas-based Dean Foods said.
"The board conducted a wide-ranging review of alternatives for our business and determined that the continued transformation of Dean Foods under Eric's leadership provides the best means for creating value for the company, our shareholders and other stakeholders," said Jim L. Turner, nonexecutive chairman of the board. "Eric is an industry veteran with more than three decades of transformational leadership and operational experience in the food, beverage and consumer products industries, and we are confident that his oversight of and adjustments to our operating plan will build on the current momentum and drive improved performance in the business."
Dean Foods recently enhanced its liquidity by securing additional commitments to increase its senior secured revolving credit facility to $350 million. Together with its existing $450 million accounts receivable securitization facility, the company said it has flexible, low-cost access to capital that will allow it to pursue its operating plan.
"With this strong foundation in place, we will move forward with an increased focus on our customers and leverage our many competitive advantages — including our portfolio of strong national brands, extensive private label capabilities, category-leading position and our uncompromising commitment to quality, safety and service — to drive profitable volume,” Beringause noted.
The company said it intends to provide details on its go-forward strategy when it reports third-quarter 2019 earnings in early November.