The purchase and sale agreement between Dean Foods and DFA in the United States has been terminated
We remind that the deal was reported in February this year. DFA was to purchase 44 active and stalled Dean Foods facilities, including equipment and other assets needed to operate the equipment.
In February, DFA agreed to pay a base price of $425 million to acquire 44 Dean Foods facilities and the inventory, equipment, and other assets needed to operate them.
Back in November 2019, Dean Foods declared bankruptcy and almost immediately announced the process of negotiations with DFA.
If the court had approved the deal, DFA would have received the first bid for assets of Dean Foods in the auction process and thus set the bidding bar low. However, the deal was canceled.
Bloomberg reported that Dean Foods abandoned the agreement after resistance from creditors and its bankruptcy judge.
The new round of the process will require interested parties to submit applications by March 30, and the DFA is currently deciding whether to participate.
Perhaps DFA will claim a smaller than planned share of Dean Foods. The cooperative is confident that whatever the case, the decision of the company will benefit the dairy industry of the country.