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,” said Eric Beringause, President and Chief Executive Officer of Dean Foods. “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 announced on April 4, 2020, the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) approved the sale, subject to entry of final agreed orders, of a substantial portion of Dean Foods’ business operations, including the sale of the assets, rights, interests and properties relating to 44 of the Company’s fluid and frozen facilities, to Dairy Farmers of America (“DFA”) for $433 million. The 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, Florida to Mana Saves McArthur, LLC for $16.5 million. The Court also approved Producers Dairy Foods’ purchase of Dean Foods’ Reno, Nevada facility for $3.7 million and its purchase of the “Berkeley Farms” trademark and related intellectual property for $3 million, as well as Harmoni, Inc.’s acquisition of the Company’s Uncle Matt’s business for $7.25 million. Each pending transaction remains subject to customary closing conditions, including any required regulatory approvals. The Company anticipates completing all remaining transactions by early May.