Milk processor Dean Foods Co. named Dairy Farmers of America Inc.’s $433 million bid as the winner at a bankruptcy auction for most of Dean’s assets, a step toward potentially uniting the two dairy giants, WSJ Pro Bankruptcy reported. Dallas-based Dean, which filed for chapter 11 protection in November, said yesterday that the DFA cooperative would purchase 44 fluid and frozen dairy processing facilities, subject to the approval of the U.S. Bankruptcy Court in Houston. The purchase price represents a slight increase from the $425 million DFA had previously offered under an agreement to serve as the lead bidder at auction. Dean later stripped DFA of its designation as the stalking horse after other creditors objected, forcing it to compete on equal footing with other bidders. Some farm groups have raised concerns that a tie-up between Dean and DFA, based in Kansas City, Kan., might lead to an excessive concentration of milk buyers in parts of the country. Dean, the top U.S. milk processor by sales, has struggled for years with slumping consumer demand for traditional cow’s milk. The company’s brands include DairyPure, Land-O-Lakes and TruMoo.
