Dean Foods Company (NYSE: DF) (“Dean Foods” or the “Company”) today announced that its Board of Directors has concluded its previously announced review of strategic alternatives.
Since February 2019, the Board, in consultation with its financial and legal advisors, has been engaged in a comprehensive review of strategic alternatives, including a possible sale of the Company. The Board has determined that the execution of its standalone operating plan under the leadership of Eric Beringause, who was appointed as President and CEO onJuly 29, 2019, will provide the best opportunity to enhance long-term shareholder value.
“The Board conducted a wide-ranging review of alternatives for our business and determined that the continued transformation of Dean Foods under Eric’s leadership provides the best means for creating value for the Company, our shareholders and other stakeholders,” said Jim L. Turner, Non-Executive Chairman of the Board. “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.”
The Company recently enhanced its liquidity by securing additional commitments to increase its senior secured revolving credit facility to $350 million. Together with its existing $450 million accounts receivable securitization facility, Dean Foods has flexible, low-cost access to capital that will allow it to pursue its operating plan.
The Company intends to provide details on its go-forward strategy when it reports third quarter 2019 earnings in early November.
Dean Foods is a leading food and beverage company and the largest processor and direct-to-store distributor of fresh fluid milk and other dairy and dairy case products in the United States. Headquartered in Dallas, Texas, the Dean Foods portfolio includes DairyPure®, the country’s first and largest fresh, national white milk brand, and TruMoo®, the leading national flavored milk brand, along with well-known regional dairy brands such as Alta Dena®, Berkeley Farms®, Country Fresh®, Dean’s®, Friendly’s®, Garelick Farms®, LAND O LAKES®* milk and cultured products, Lehigh Valley Dairy Farms®, Mayfield®, McArthur®, Meadow Gold®, Oak Farms®, PET®**, T.G. Lee®, Tuscan® and more. Dean Foods also has a joint venture with Organic Valley®, distributing fresh organic products to local retailers. In all, Dean Foods has more than 50 national, regional and local dairy brands as well as private labels. Dean Foods also makes and distributes ice cream, cultured products, juices, teas, and bottled water. Approximately 15,000 employees across the country work every day to make Dean Foods the most admired and trusted provider of wholesome, great-tasting dairy products at every occasion. For more information about Dean Foods and its brands, visit www.deanfoods.com.