As part of its Chapter 11 bankruptcy process, Dean Foods entered into an asset purchase agreement with MGD Acquisition for the sale of certain facilities in Hawaii, including its Hilo facility and related distribution branches on the Big Island, Kauai and Maui. The agreement also includes a license to the Meadow Gold Hawaii brand name and related intellectual property. MGD Acquisition plans to operate the assets as an ongoing business. The agreement is subject to final approval by the bankruptcy court.
“We are pleased to have reached an agreement with MGD Acquisition that will allow our Meadow Gold Hawaii business to continue to operate and serve customers across Hawaii,” Eric Beringause, president and CEO of Dean Foods, said. “We thank our employees for their continued patience, dedication and commitment to our customers throughout this process, and are focused on completing this transaction as quickly as possible.”
As previously reported, Alvarez & Marsal served as financial advisor to Dean Foods during the company’s sale process and auction as part of its Chapter 11 proceedings. Dairy Farmers of America was named the winning bidder to acquire a substantial portion of Dean Foods’ business operations. Pursuant to the agreement, which was approved by the bankruptcy court on April 4, Dairy Farmers of America will acquire the assets, rights, interests and properties relating to 44 of Dean Foods’ fluid and frozen facilities for $433 million.
The bankruptcy court also approved the sale, subject to entry of final agreed orders, of the assets, rights, interests and properties relating to eight additional facilities, two distribution branches and certain other assets to Prairie Farms Dairy for $75 million in cash and the sale of Dean Foods’ facility in Miami to Mana Saves McArthur for $16.5 million. The court also approved Producers Dairy Foods’ purchase of Dean Foods’ Reno, NV, facility for $3.7 million and its purchase of the “Berkeley Farms” trademark and related intellectual property for $3 million, as well as Harmoni’s acquisition of the Dean Foods’ Uncle Matt’s business for $7.25 million. Each pending transaction remains subject to customary closing conditions, including any required regulatory approvals. Dean Foods expects to complete the remaining transactions by early May.
Dean Foods is a food and beverage company and a processor and direct-to-store distributor of fresh fluid milk and other dairy and dairy case products in the United States.
