Dairy Farmers of America Prefers to Buy Dean Foods and Now Others May Too
Dairy Farmers of America Inc., the most important and biggest U.S. dairy cooperative, is in superior talks to accumulate U.S. milk processor Dean Foods Co. However, different would-be consumers might emerge.
Whereas discussions are going down between DFA and Dean, no settlement has been reached for the purchase of all or a number of the Dallas-based mostly company’s property, Monica Massey, government vice president, and chief of employees at DFA, stated in an emailed response to questions. She didn’t speculate on potential bidders.
A deal could possibly be a prolonged course of, together with an antitrust evaluate. Any transaction would require an “extensive review of Dean Foods’ property, thorough due diligence and different conditions that include approval from the Department of Justice and the Bankruptcy Court,” Massey stated. Dean intends to file bidding procedures with the court to conduct a sale.
“We have now been monitoring Dean Foods’ financial performance closely because the business started exhibiting signs of distress and have been preparing for various scenarios, including a bankruptcy filing, as a way to minimize the impact to DFA,” Massey stated
Dean Foods is the largest customer of the Kansas City-primarily based cooperative, which has around 14,500 household farmer members across the nation. DFA is concentrated on “ensuring we’ve secure markets for our members’ milk,” she stated.
Whereas People could also be ingesting much less typical milk, 94% of U.S. households additionally maintain it of their fridges, Massey stated. The dairy class, as a complete stays robust, with cheese and butter in any respect-time consumption highs. People ate 2.5% extra dairy in August than they did the year earlier than, and the retail market is worth over $100 billion, she stated.