USA: Suiza Foods and Dean Foods to merge, new company to take Dean name
The two largest dairy interests in the US are set to merge. Suiza Foods has confirmed it is to acquire Dean Foods in a deal worth US$2.5bn. Suiza will pay US$1.5bn in cash and stock while also assuming US$1bn of Dean Food's debt.
The new company, which is to be called Dean Foods but based in Suiza home city Dallas, will generate enormous sales of around US$10bn. This equates to over 30% of the milk consumed within the US, heralding a major change for the US$25bn market traditionally dominated by smaller, local companies.
"The merger is an important step in delivering on our ongoing growth strategy and positioning us for the future," said Gregg Engles, Suiza's chairman and CEO.
Engles will become chief executive officer of the merged group, while current Dean Foods chairman and CEO Howard Dean will become chairman of the new company. Dean Foods' shareholders will receive total compensation worth US$40.92 per share, consisting of US$21 in cash and 0.429 share of Suiza common stock.
The merger will bring together Suiza brands like Oak Farms, London's, Country Fresh and Sun Soy, together with Dean Foods bringing milk, ice cream, whipped cream and other specialty foods like pickles, puddings and sauces to the deal. As the companies show no substantial overlap in their product ranges, the deal should be completed by the third quarter of this year.
As organic food continues to move into the mainstream, a wealth of companies, from the family-run to the multinational, are taking advantage of this popularity, with new products and line extensions. ...
US dairy products company Dean Foods has announced that Joseph Scalzo has begun his term as president and chief executive officer of the company's WhiteWave Foods division....
US dairy products company Dean Foods has announced that, effective 1 January 2006, Alan Bernon will assume the role of president of Dean Dairy Group....
California-based Ventura Foods has announced that it has completed its purchase of the Marie's dressings and Dean's dips businesses from Dean Foods....
US dairy firm Dean Foods has announced that Joseph Scalzo will join the company as president and chief executive officer of WhiteWave Foods....
Food processor Dean Foods has announced increased income for the second quarter ended 30 June 2005, helped by lower raw milk and butterfat costs and increased profitability at its WhiteWave Foods subs...
Kellogg company executive Dr. Michael McBurney has been named the head of the new department of nutrition and food science at Texas A&M University....
Edible oil product company Ventura Foods has entered into an agreement to purchase the Marie's dressings and Dean's dips businesses from Deans Foods Company....
- 2017: three major drivers of M&A strategy
- just-food 2017 Survey - your thoughts on growth
- Food market in 2017: need-to-know US trends
- 2017 - what will shape the UK food sector?
- Could BRF's Turkey move pave way for OneFoods IPO?
- Premier Foods issues profit warning
- UK's Bakkavor plays down IPO "speculation"
- Ferrero insists Nutella not pulled from shelves
- Lindt sees FY sales acceleration on Europe growth
- Unilever sets packaging target