USA – Dean Foods, America’s leading food and beverage manufacturer has resolved to operate as a standalone unit following a comprehensive review of strategic alternatives, including a possible sale of the company.
Dean Foods initiated the review in February this year as it sought to determine a go-forward strategy under new leadership to enhance long-term shareholder value.
Under the review, the company was considering various alternatives including the sale of assets, the formation of a joint venture, going private with a buyer, or an outright sale.
Following the review, Dean Foods said that the it is confident that execution of the company’s standalone operating plan under the leadership of Eric Beringause will provide the best opportunity to enhance long-term shareholder value.
Eric was appointed as the company’s president and chief executive on July 29, 2019. Dean Foods said that under Eric’s leadership, the plan provides the best means for creating value for the company.
Jim L. Turner, Non-Executive Chairman of the Board said, “Eric is an industry veteran with more than three decades of transformational leadership and operational experience in the food, beverage and consumer products industries.
“We are confident that his oversight of and adjustments to our operating plan will build on the current momentum and drive improved performance in the business.”
“Dean Foods is the largest processor and direct-to-store distributor of fresh fluid milk and other dairy case products in the United States, with an operational footprint that includes 60 manufacturing facilities strategically located across the country and a fleet of more than 5,000 trucks that distribute products in nearly all 50 states,” said Mr. Beringause.
“With this strong foundation in place, we will move forward with an increased focus on our customers and leverage our many competitive advantages – including our portfolio of strong national brands, extensive private label capabilities, category leading position and our uncompromising commitment to quality, safety and service – to drive profitable volume.
“We are also continuing to execute on our cost-savings and supply chain productivity programs, designed to enable Dean Foods to be more agile and cost-efficient in the marketplace.
“As we implement these initiatives, we remain focused on maintaining the highest levels of quality, service and value that our customers have come to expect and that are paramount to our success.”
The Company intends to provide details on its go-forward strategy when it reports third quarter 2019 earnings in early November.