The U.S.’ largest supplier of milk has finally found a buyer after declaring bankruptcy in November.
Dean Foods announced on Monday that the Dairy Farmers of America (DFA) would be buying its business for $425 million. The move will put the organization in charge of 44 of the Dean Foods’ facilities and transfer liabilities incurred during the company’s financial slide.
“As Dean is the largest dairy processor in the country and a significant customer of DFA, it is important to ensure continued secure markets for our members’ milk and minimal disruption to the U.S. dairy industry,” said DFA president and CEO Rick Smith.
“As a family farmer-owned and governed cooperative, no one has a greater interest in preserving and expanding milk markets than DFA. We are pleased that we have come to an agreement on a deal that we believe is fair for both parties.”
The proposed deal still needs to be approved by the court in charge of Dean Foods’ bankruptcy proceedings. If it gets that approval, DFA would become the lead bidder for the company’s business.
In a statement, Dean Foods CEO Eric Beringause expressed support for the deal with DFA.
“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,” he said.