On Monday, the Dairy Farmers of America, Inc. announced it reached an agreement worth $425 million with Dean Foods.
In statements from both firms, DFA will acquire 44 of Dean Food’s plants that produce fluid and frozen products. This includes the Indiana locations in Decatur, Huntington, and Rochester.
“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 Rick Smith, president and CEO of DFA. “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.”
Back in November, Dean Foods announced it was filing for bankruptcy. The Justice Department is investigating the potential market impact of DFA acquiring Dean Foods.
“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,” said Eric Beringause, president and CEO of Dean Foods.
DFA is the largest dairy cooperative in the U.S.