The largest milk processing company in America has been sold to the largest dairy cooperative.
The Wall Street Journal is reporting that Dean Foods has been sold to Dairy Farmers of America for $425 million dollars, and that the Kansas City, Kansas based agricultural cooperative will take over the bulk of Dean Foods plants.
Dean Foods filed for bankruptcy back in November.
The deal would require the Justice Department and bankruptcy court approval, but it would maintain the market for milk, according to a news release by the Dairy Farmers of America.
The dairy cooperative would assume Dean Food’s liabilities as part of the deal to acquire 44 of the company’s facilities, and other assets.
Dean Foods had previously purchased the milk processing plant in Le Mars from Wells Enterprises and still operates that facility.
Nothing was specifically mentioned about the Le Mars plant in the purchase