Dean Foods Co. agreed to sell a large chunk of its business to Dairy Farmers of America Inc. after the top U.S. milk processor went broke amid declining consumption and competition from Walmart Inc., Bloomberg News reported. After filing for chapter 11 protection in November, the maker of Dairy Pure products has agreed to divest 44 of its fluid and frozen facilities as well as assets necessary to operate them, it said on Monday. Separately, DFA said that it would pay a base price of $425 million for the assets, as well as taking on various liabilities, without elaborating. Dallas-based Dean’s losses piled up after its biggest customer, Walmart, built its own milk plant, with the rising price of raw milk further eroding margins. Demand for cow milk has been weak, too, with nut milks and even bottled water cutting into its popularity. Another large dairy processor, Borden Dairy Co., filed for bankruptcy shortly after Dean.
