US dairy firms Dean Foods and Borden Dairy Company have both recently field for Chapter 11 bankruptcy, but Bloomberg reports no potential merger is on the cards.
According to Bloomberg’s correspondence with Borden Dairy, the news agency wrote last Friday (14 February) that the milk processor had told Dean Foods “it doesn’t intend to pursue a transaction and it anticipates no further discussions with Dean on the topic”.
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Bloomberg continued that Borden Dairy had held “30-minute talks” with Dean Foods but the meeting “amounted to nothing more than unrealistic musings of a possible combination”.
Dean Foods declined to comment when contacted by just-food, and Borden Dairy had yet to reply to a request for comment at the time of writing.
Dallas-based Dean Foods, a fresh milk and private-label manufacturer and the owner of brands such as DairyPure and TrueMoo, filed for Chapter 11 in November. The previous February, the company had announced a strategic review but months later revealed it had decided to press head with an internal transformation programme rather than pursue a sale or joint venture.
And when Dean Foods announced Chapter 11 in November, it flagged a potential deal with the US cooperative Dairy Farmers of America but so far nothing has materialised. just-food has also approached the co-op for an update of proceedings.
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By GlobalDataBorden Dairy, also based in Dallas, filed for bankruptcy this January when chief executive Tony Sarsam said “the company continues to be impacted by the rising cost of raw milk and market challenges facing the dairy industry”.
See just-food’s analysis: Dean Foods left with little wiggle room after ruling out sale
