Dairy Farmers of American and Dean Foods have announced the withdrawal of a plan for DFA to purchase Dean’s assets.
“By avoiding unnecessary litigation regarding procedure and bid protections for DFA, all parties involved, including DFA, will focus on developing competitive and value-maximizing bids,” according to a statement from Dean Foods.
The Kansas City Business Journal reports DFA remains in the running to buy the nation’s largest milk processor, but it no longer has an inside track.
Dean Foods filed for Chapter 11 bankruptcy in November, and will have its assets sold in a court-administered auction process. In February, DFA made an offer to buy Dean Foods for $425 million-plus the assumption of various liabilities.
Officials with Dean and DFA said they mutually agreed to withdraw the request that DFA’s bid be considered the baseline.