On Wednesday, February 20, 2019, in Dobbs Ferry, New York, USA, a container containing Dean Foods Co. Dairy Pure sour cream was displayed for photographing.
Tiffany Hagler Bloomberg | Getty Images
The dairy cooperative will also assume Dean's debt as part of a deal to acquire the company's 44 plants and other assets.
Dean Application for Chapter 11 Bankruptcy In November last year, as the company sought to attract consumers who switched to non-dairy or private label products, Dean reported a net loss for seven of the past eight quarters when it filed for bankruptcy protection.
"We have worked with DFA for the past 20 years and we are confident of their ability to succeed in the current market and serve our customers with our same commitment to quality and service," said Eric Beringause, CEO of Dean Foods in Said in a statement.
If approved by the bankruptcy court, the agreement will make U.S. dairy farmers a stalking bidder, meaning that the deal will be subject to a higher or better offer when the company goes bankrupt.
The transaction also needs approval from the Ministry of Justice, which reportedly has begun investigations into the merger, According to the Wall Street Journal.