Dairy Farmers of America agrees to buy Dean Foods

Dairy Farmers of America

Dairy Farmers of America announced Monday that it has agreed to buy Dean Foods for $425 million.

DFA will also assume Dean’s liabilities as part of the deal to acquire 44 of the company’s facilities and other assets.

Dean Foods filed for chapter 11 bankruptcy in November after reporting a net loss in seven of its last eight quarters.

“We have had a relationship with DFA over the past 20 years, and we are confident in their ability to succeed in the current market and serve our customers with the same commitment to quality and service they have come to expect,” Dean Foods CEO Eric Beringause said in a statement.

If approved by the bankruptcy court, the agreement would ake the DFA the stalking horse bidder. The deal would also need approval from the Department of Justice.