Dean Foods Sells Morningstar Foods
Dean Foods Company is selling Morningstar Foods to Saputo Inc., Canada's largest dairy processor, for U.S. $1.45 billion.
Morningstar is a leading manufacturer of dairy and non-dairy extended shelf-life and cultured products, including creams and creamers, ice cream mixes, whipping cream, aerosol whipped toppings, iced coffee, half and half, value-added milks, sour cream and cottage cheese.
Dallas-based Dean will use the expected $887 million in net proceeds to significantly reduce outstanding debt, "resulting in a stronger balance sheet and increased flexibility to execute against our strategies for our core dairy business," said CEO Gregg Tanner.
The Morningstar sale, expected to close by late 2012 or early 2013, leaves Dean largely a producer of branded and private-label milk.
As a condition of the sale, Dean Foods also entered into an agreement with The WhiteWave Foods Company, a controlled subsidiary of the company, whereby WhiteWave will receive $60 million net of taxes as consideration for the termination of an option to purchase plant capacity and property at a Morningstar facility and the sale to Morningstar of certain manufacturing equipment located at another Morningstar plant. In addition, WhiteWave and Morningstar agreed to modify certain terms of existing intercompany commercial agreements between the two companies.
Morningstar, which had 2011 sales of $1.3 billion, is expected to complement the activities of the Saputo Dairy Products Division, which is based in Illinois, reported the Dallas Morning News.
Recent Marketing Daily Articles
-
Miller64 Partners With Former Pro Athletes May 20, 10:30 p.m.
Miller64 is launching "GO64," a summer-long initiative that will include local events, celebrity appearances, giveaways and ... -
Vespa Looks Back: 50 Years Of 50cc's May 20, 4:36 p.m.
Vespa has been tooling about since the ’40s, and sidelining as a movie star since the ... -
Skyy Launches 'Be Part Of The Art' May 20, 4:22 p.m.
To support the debut of its new Skyy Infusions Moscato Grape variety, Skyy Vodka has launched ... -
Industry Satisfaction Lagging, But Improving May 20, 4:02 p.m.
For the first time in years, the telecom industry is seeing improved customer satisfaction scores. But ... -
OMMA Social: Macy's Looks To Social For Connection May 20, 3:25 p.m.
Macy's is using social to connect with customers. That, said Jennifer Kasper, VP of digital media ... -
4 Types Of Marketing Cultures: How Fast Is Yours? May 20, 9:16 a.m.
Marketers everywhere may be talking about creating a fast-moving culture of innovation, but most CMOs will ... -
United Expands Loyalty Program To Businesses May 19, 10:13 p.m.
United Airlines is launching the MileagePlus Small Business Network, the first U.S. travel loyalty program that ... -
Champs Taps Westbrook For Ad Push May 17, 4:52 p.m.
When it comes to a spokesperson deal, if you’re a star athlete you don’t necessarily have ... -
Strategic Vision: Domestics' Strong Showing In Quality May 17, 4:47 p.m.
For several years there has been convergence in the automotive market. No, we're not speaking of ... -
Athenos Unleashes 'Cooking With Yiayia' Campaign May 17, 9:48 a.m.
Julia Child she isn’t, but Yiayia brings her own, trademark irascible appeal to a new series ...
Be the first to comment on "Dean Foods Sells Morningstar Foods"
Leave a Comment