DFA Pays $433 Million To Finalize Dean Foods Deal
DFA has officially acquired a substantial portion of Dean Foods’ assets. The conclusion of the deal came after months of negotiation, and speculation. However, in the end, the two companies came to an agreement of $433 million, $8 million more than the cooperative initially offered for the assets.
As expected, the Department of Justice was not thrilled with the entire deal and asked DFA to divest of three facilities, located in De Pere, Wisc., Harvard, Ill., and Franklin, Mass. Still, DFA says they are pleased to have the deal complete providing additional stability for farmers and processing plant workers caught in the middle of the Dean Foods bankruptcy.
“After months of uncertainty regarding the future of these facilities, this transaction will secure milk markets for dairy farmers and ensure nearly 11,000 jobs in communities across the country,” says Monica Massey, executive vice president and chief of staff at DFA. “As a cooperative founded, owned and governed by family farmers, the finalization of this agreement is important to our commitment to protecting and preserving family dairy farms for generations to come.”
As part of the agreement, DFA took ownership and management of the plants effective May 1.