Dean Foods signs deal with MGD Acquisition to divest Hilo facility

US-based dairy company Dean Foods has signed an agreement with MGD Acquisition to divest its Hilo facility, as well as associated distribution branches on the Big Island, Kauai and Maui, Hawaii.

The deal also includes the licence of the Meadow Gold Hawaii brand name and related intellectual property.

Dean Foods president and CEO Eric Beringause said: “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.

“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.”

Completion of the deal is subject to the final approval by the Bankruptcy Court.

MGD Acquisition plans to operate the assets as an ongoing business and will continue to serve the Hawaiian community.

On 4 April, the US Bankruptcy Court for the Southern District of Texas approved the sale, subject to the entry of final agreed orders, of a significant portion of Dean Foods business operations, assets, rights, interests and properties relating to 44 of the company’s fluid and frozen facilities to Dairy Farmers of America (DFA) for $433m.

Additionally, the court approved the sale of the assets, rights, interests and properties of eight additional facilities, as well as two distribution branches and certain other assets to Prairie Farms Dairy for $75m in cash. Approval was also given to divesture of Dean Foods’ facility in Miami, Florida to Mana, Saves McArthur for $16.5m.

The court also granted permission to Producers Dairy Foods’ to acquire Dean Foods’ Reno, Nevada facility for $3.7m, as well as Berkeley Farms’ trademark and related intellectual property for $3m. Harmoni’s acquisition of Dean Foods’ Uncle Matt’s business for $7.25m was also given approval.

The company anticipates completing all remaining transactions by early May.