Dean Foods, which had been considering strategic alternatives including a possible sale, has decided to move forward on its own.
The Dallas-headquartered milk processor announced in February that it was exploring alternatives including the sale of assets, the formation of a joint venture, going private with a buyer, or an outright sale.
However, the company’s board believes that the execution of its standalone operating plan under the leadership of new CEO Eric Beringause will provide the best opportunity to enhance long-term shareholder value.
“Eric is an industry veteran with more than three decades of transformational leadership and operational experience in the food, beverage and consumer products industries, and we are confident that his oversight of and adjustments to our operating plan will build on the current momentum and drive improved performance in the business,” said Jim Turner, non-executive chairman of the board.
Beringause added: “Dean Foods is the largest processor and direct-to-store distributor of fresh fluid milk and other dairy case products in the United States, with an operational footprint that includes 60 manufacturing facilities strategically located across the country and a fleet of more than 5,000 trucks that distribute products in nearly all 50 states.
“With this strong foundation in place, we will move forward with an increased focus on our customers and leverage our many competitive advantages – including our portfolio of strong national brands, extensive private label capabilities, category-leading position and our uncompromising commitment to quality, safety and service – to drive profitable volume.
“We are also continuing to execute on our cost-savings and supply chain productivity programmes, designed to enable Dean Foods to be more agile and cost-efficient in the marketplace.”
The company said it will provide details on its go-forward strategy when it reports third-quarter 2019 earnings in early November.
© FoodBev Media Ltd 2020
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