USA – As part of a court-supervised sale process, American dairy company, Dean Foods has announced that it has completed the sale of the its Uncle Matt’s business to Harmoni for US$7.25 million.
Dean Foods has also announced the completion of the sale of its Hilo facility and related distribution branches on the Big Island, Kauai and Maui to MGD Acquisition.
Dean Foods and MGD Acquisition entered into an asset purchase agreement on April 22nd, after the previously agreed deal with privately-held real estate development and investment firm, Industrial Realty Group fell apart.
The Californian-based investment firm had agreed in principle to buy Dean Foods’ Meadow Gold Hawaii operations including the assets, rights, interests and properties relating to Dean Foods’ Hilo and Honolulu facilities for US$25.5 million.
The deal was later approved by the U.S. Bankruptcy Court for the Southern District of Texas on April 4th. It was until April 13th when Dean Foods revealed that the deal had hit a hurdle and could not close. At the time of termination, Dean Foods said that it intends to close operations at its Honolulu facility by April 30, 2020.
However, the company was able to secure an agreement with MGD Acquisition to divest its Hilo facility and related distribution branches on the Big Island, Kauai and Maui as well as a license to the Meadow Gold Hawaii brand name and related intellectual property.
Commenting on the successful closure of the deals, Eric Beringause, President and Chief Executive Officer of Dean Foods said: “These transactions are great outcomes for our Uncle Matt’s and Meadow Gold Hawaii businesses that will ensure that they can continue to provide the healthy, great tasting products that customers love.
“The close of these transactions also marks an important milestone in our court-supervised sale process, and we are focused on swiftly completing the remainder of our previously announced sales.
“We thank our employees for their continued patience, hard work and dedication as we have worked through this process.”
The food and beverage giant, which filed for bankruptcy in November last year, said that it anticipates completing all remaining transactions imminently.
The transactions include sale of; 44 of the company’s fluid and frozen facilities to Dairy Farmers of America (DFA) for US$433 million; eight additional facilities, two distribution branches and certain other assets to Prairie Farms Dairy for US$75 million as well as its facility in Miami to Mana Saves McArthur for US$16.5 million, among others.
The transactions have already received approval from the U.S. Bankruptcy Court for the Southern District of Texas and are valued at approximately US$531 million.