Dairy Farmers of America and Dean Foods have reached an agreement worth $425 million. In the agreement, DFA will acquire 44 plants along with equipment, inventory real estate and other assets owned by Dean Foods. DFA’s bid will serve as a floor bid for the sale of Dean’s assets according to a filing ahead of an April 13 deadline for bids for Dean’s business and potential auction. DFA CEO Rick Smith says Dean is a significant customer of DFA and it is important to ensure secure markets for DFA members milk. As part of the agreement, Dean Foods has committed to pay a $15 million breakup fee if Dean sells to a rival bidder.
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