DALLAS and FRANKLIN PARK, Ill./PRNewswire/ — Suiza Foods Corporation (NYSE: SZA – news) and Dean Foods Company (NYSE: DF – news) announced today that they plan to divest five additional plants which the companies expect will resolve regulatory issues relating to their pending merger. Suiza Foods also expects to make modifications to the terms of its buyout of the minority interest in its dairy group held by Dairy Farmers of America. The companies plan to complete the merger prior to year end.
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The combined company expects to divest a total of 11 plants in connection with the merger, including plants in Huntsville, Ala.; Winterhaven and Miami, Fla.; New Paris, Ind.; London and Madisonville, Ky.; Cincinnati and Cleveland, Ohio; N. Charleston, S.C., Salt Lake City, Utah; and Bristol, Va. All of the divested plants are expected to be sold at closing to National Dairy Holdings, L. P.
“We are very excited about the prospects for the combined company,” said Gregg Engles, Chairman and Chief Executive Officer of Suiza Foods. “None of the proposed changes to the original structure of the transaction will have any material effect on the merger or the benefits we expect to realize from these transactions. We look forward to closing the transaction and moving ahead with the integration process.”
Howard Dean, Chairman and Chief Executive Officer of Dean Foods, remarked, “We are very pleased to have made significant progress toward completion of the merger. We remain confident that the combined company will have the capability to better serve our customers and, as a result, create long-term value for the shareholders of the new Dean Foods Company.”
Completion of the merger and the sale of the plants is subject to final regulatory review and other customary closing conditions.
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By GlobalDataAbout Dean Foods:
Dean Foods, headquartered in the Chicago area, is one of the nation’s leading dairy processors and distributors producing a full line of branded and private label products, including fluid milk, ice cream and extended shelf life products, which are sold under the Dean’s and other well-known regional brand names. Dean Foods is an industry leader in other food products including pickles, powdered non-dairy coffee creamers, aseptically packaged foodservice products, and refrigerated dips and salad dressings. More information about Dean Foods can be found on its web site at http://www.deanfoods.com .
About Suiza Foods:
Suiza Foods Corporation, based in Dallas, Texas, is the nation’s leading dairy processor and distributor, producing a full line of company-branded and customer-branded products. National brands include International Delight®, Second Nature®, Naturally Yours®, Mocha Mix®, Sun Soy(TM), kidsmilk(TM) and fitmilk(TM). Regional brands consist of Adohr Farms®, Barbe’s®, Brown’s Dairy(TM), Broughton®, Country Fresh®, Dairy Gold®, Dairymens®, Lehigh Valley Farms®, London’s®, Meadow Gold®, Model Dairy(TM), Natural by Garelick Farms®, Oak Farms®, Poudre Valley®, Robinson®, Schenkel’s All Star Dairy®, Schepps®, Shenandoah’s Pride®, Suiza(TM), Louis Trauth(TM), Tuscan®, Velda Farms® and West Lynn Creamery®. Suiza also sells product under licensed brands in certain regions including Borden®, Flav-O-Rich®, Foremost®, Hershey’s® and Pet®. Additionally, the company owns approximately 43% of Consolidated Container Company, one of the nation’s largest manufacturers of rigid plastic containers for consumer goods.
