Dairy Farmers of America reaches agreement to acquire ‘substantial portion’ of Dean Foods
DFA agreed to pay a base purchase price of $425 million — as well as to assume various liabilities, subject to certain adjustments — to acquire 44 of Dean’s facilities and associated direct-store-delivery system, and certain corporate and other assets and functions.
Dairy Farmers of America Inc. (DFA) said an agreement has been reached with Dallas-based Dean Foods whereby the Kansas City, Kan.-based farmer-owned cooperative becomes the stalking horse bidder to acquire a “substantial portion” of Dean Foods’ assets and business.
The two parties have been working to reach an agreement since DFA became aware of Dean Foods’ plan to initiate voluntary Chapter 11 reorganization proceedings.