USA – Californian-based real estate development and investment firm, Industrial Realty Group (IRG) has terminated the previously announced agreement in principle to buy Dean Foods’ Meadow Gold Hawaii operations for US$25.5 million.
The agreement, which was announced on March 31st this year, involved Industrial Realty Group’s acquisition of Meadow Gold Hawaii business including the assets, rights, interests and properties relating to Dean Foods’ Hilo and Honolulu facilities.
The deal was later approved by the U.S. Bankruptcy Court for the Southern District of Texas on April 4th. Dean Foods said that following the termination, the dairy company intends to close operations at its Honolulu facility by April 30, 2020.
The dairy processor has also reached an agreement in principle with an interested party for the sale of Dean Foods’ Hilo facility as an ongoing business and related distribution branches on the Big Island, Kauai and Maui.
The company, which was not disclosed will also acquire Dean Foods’s Meadow Gold Hawaii brand name and related intellectual property.
In pursuant to the agreement, which is subject to final approval by the Bankruptcy Court, the firm will acquire the assets, rights, interests and properties relating to Dean Foods’ Meadow Gold Hawaii business with the exception of the Honolulu facility.
Commenting on the new arrangement, Eric Beringause, President and CEO of Dean Foods said: “We are extremely disappointed that we were unable to finalize an agreement for Industrial Realty Group to acquire our Hawaii operations.
“This was a difficult decision but, ultimately, given the timeline of our Chapter 11 restructuring we were not able to find a path forward that would enable our Honolulu operations to continue through our comprehensive court-supervised sale process.
“That said, we are pleased to have reached an agreement in principle for our Hilo facility and that an interested party intends to continue the plant’s operations and maintain the Meadow Gold Hawaii brand name.”
However, Dean Foods declined to disclose the interested party which is involved in the new agreement.
Dean Foods anticipates other transactions including the US$433 million sale 44 of the company’s fluid and frozen facilities to Dairy Farmers of America (DFA) among several other separate transaction to close by early May.