The winning bids totaled $533.85 million.
The bankruptcy liquidation continued to unfold amid the COVID-19 pandemic because Dean Foods continues to hemorrhage money each and every day. As for the next deadlines, “sale-related objections” must be filed on April 1. That will be followed by an April 3 hearing to consider the proposed sale orders. Indeed, the final fate of Dean Foods could be settled by month’s end when the transactions are expected to close.
Dean Foods originally filed for bankruptcy protection on November 12 as detailed in the item "Dean Foods goes bankrupt; to sell assets."
Four winning bidders
The United States District and Bankruptcy Court South District of Texas disclosed bids from 35 suitors for portions of the Dean Foods business entity. Of those 35 bids, six came from farmer-owned dairy cooperatives. As part of the court supervised sale process, Dean designated the following winning bidders:
- Dairy Farmers of America (DFA): $433 million for 44 fluid and frozen assets. The offer from DFA excluded 13 currently operating production facilities, three currently operating supply depots, and 10 closed facilities. DFA is a dairy-farmer owned cooperative.
- Prairie Farms: $75 million for eight production facilities and two distribution plants. The locations included: Birmingham, Ala.; Tulsa, Okla.; Sioux Falls, S.D.; Bismarck, N.D.; Woodbury, Minn.; Marietta, Ohio; Fallon, Ill.; Akron, Ohio; Livonia, Mich.; and Hammond, La. Prairie Farms is a dairy-farmer owned cooperative.
- Mana Saves McArthur: $16.5 million for the McArthur Dairy Plant in Miami, Fla., and its distribution centers in West Palm Beach and Fort Myers, Fla.
- Harmoni: $7.25 million for Uncle Matt’s Organic Inc.
- Producers Dairy Foods: $2.1 million for the Model Dairy processing facility in Reno, Nev.
The other dairy co-op bids
The following bids were not accepted:
- California Dairies: $50.5 million for two dairy processing facilities in City of Industry, Calif., and distribution depots located in San Diego, Anaheim, Oxnard, and North Palm Springs, Calif.
- Maryland & Virginia Milk Producers Cooperative Association: $18.129 million for facilities in High Point, N.C., and Chesapeake, Va.
- Darigold: $13.2 million for the Billings, Mont.; Boise, Idaho; and Salt Lake City, Utah, entities.
- Upstate Niagara Cooperative: $13.199 million for the Sharpsville, Pa., facility.
To review the United States District and Bankruptcy Court South District of Texas’ portal for all 35 bids, go to the Southern Food Group LLC d/b/a Dean Foods. The docket is listed in chronological order and all bids were listed on March 31, 2020.
