Dean Foods is exploring strategic alternatives that could include the sale of assets, the formation of a joint venture, going private with a buyer, or an outright sale of the company.
The Dallas-headquartered company – owner of brands such as Tuscan, DairyPure and TruMoo – has started the review to enhance shareholder value and accelerate its “business transformation”.
It has not set a timetable for the conclusion of the review, nor has it made any decisions related to any potential strategic alternatives at this time, adding that “there can be no assurance that the strategic exploration review will result in a transaction or other strategic change or outcome”.
Dean Foods CEO Ralph Scozzafava said: “As one of America’s largest dairy providers, Dean Foods is committed to delivering significant value to all our stakeholders, including our customers, consumers, shareholders, communities and employees.
“We are taking vital, transformative actions to maximise the benefits of our scale and position the company for the long term, including implementing an enterprise-wide cost productivity plan and investing in core capabilities, technology, infrastructure, people and systems.
“As we seek to accelerate our business transformation and enhance shareholder value, the board has initiated a review of a range of potential strategic alternatives to best position the company for the future.”
Dean Foods has been affected by increased consumer demands for dairy alternatives and lower-priced, private-label products.
Last year, the firm became a majority shareholder in Good Karma Foods – the US producer of flaxseed-based milk and yogurt alternatives.
Dean, which recorded net sales of $7.71 billion in its last financial year, has more than 50 brands and private labels, employing around 15,000 people.
© FoodBev Media Ltd 2019