The biggest U.S. dairy tillage mild struck a $425 million understanding to buy dozens of plants from broke divert processor Dean Foods Co., in a understanding executives pronounced would safety jobs and markets for farmers’ milk.
The deal, that was due by Dairy Farmers of America, requires capitulation of a failure justice and a U.S. Department of Justice.
If consummated, it would see a Kansas City, Kan., rural mild take over a bulk of Dean’s plants, following a tip U.S. divert company’s failure filing in November.
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Dean’s
DFODQ, +2.29%
failure followed a yearslong decrease in sales of liquid milk, a Dallas company’s categorical business. Bottled water, fruit juices and plant-based divert alternatives have swarming out divert cartons in grocery store libation cases, pressuring a divert business. Dean also struggled as grocery sellers like Walmart Inc.
WMT, +0.38%
and Kroger Co.
KR, -1.40%
non-stop their possess milk-bottling plants, expanding sales of store-brand divert that is mostly labelled distant next branded divert from processors like Dean.
Pressures are ascent on a U.S. divert zone over Dean. Borden Dairy Co., another Texas dairy company, filed for failure in January, also blaming descending divert expenditure and retailers’ investment in bargain-priced milk. Battling low prices, thousands of dairy farmers have sealed their milking parlors in new years, according to a U.S. Department of Agriculture.
An stretched chronicle of this news appears during WSJ.com.
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