Dairy Farmers of America, the largest private company by revenue based in the Kansas City area, is buying Dallas-based Dean Foods, which filed for Chapter 11 bankruptcy last year, for $425 million.
The deal would give DFA 44 of Dean’s 50 manufacturing facilities and includes brands, such as Land O Lakes, DairyPure, TruMoo, Tuscan and others.
“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 chief executive officer.
Dean’s net sales in 2018 were just under $7.8 billion last year, but the company lost $315 million. In December, the company received court approval to access $850 million in debtor-in-possession financing.
The DFA-Dean deal still needs bankruptcy court and U.S. Justice Department Approval.