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Dean Foods confirms end of agreement to sell Hawaii operations

Dean Foods confirms end of agreement to sell Hawaii operations
Dean Foods confirms end of agreement to sell Hawaii operations

Dean Foods Company recently made an announcement confirming that Industrial Realty Group, LLC has ended the agreement in principle it had previously inked to buy the Meadow Gold Hawaii operations of Dean Food. This purchase included the rights, assets, properties and interests that relate to the Honolulu and Hilo locations of Dean Foods. This has led to the company deciding to shut down the operations at the Honolulu facility by the end of April 2020.  

Dean Foods has reportedly inked an agreement in principle with a party interested regarding the sale of Hilo facility as an ongoing operation as well as the related distribution branches on Big Island, Kauai & Maui, along with the Meadow Gold Hawaii brand and various other related intellectual property.

The agreement is subject to a final approval to be given by the Bankruptcy Court after the interested party can acquire the rights, properties, assets and interests. This is related to the Meadow Gold Hawaii business of Dean Foods with Honolulu facility as an exception.  

Dean Foods’ Chief Executive Officer and President, Eric Beringause commented that the company is disappointed as it was unable to finalize the agreement meant for Industrial Realty Group to buy its Hawaii operations. The decision had been difficult to make, and the company had been unable to seek a path that would help the Honolulu operations to remain running through the comprehensive sale process as supervised by the court.

Beringause further elaborated that the company is looking forward to seeing the interested party to continue the operations of the Hilo plant as well as maintain the Meadow Gold Hawaii brand. He also thanked the employees for being hardworking and harboring patience during the challenging process.

The US Bankruptcy Court for Southern District of Texas had approved the sale of a significant business operations, rights, interest, properties and assets of Dean Foods to Dairy Farmers of America FOR $433 million on April 4, 2020.

 

Source Credit- https://finance.yahoo.com/news/dean-foods-announces-termination-agreement-230000008.html

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Nandita Bhardwaj

Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for newsorigins.com, spanning the verticals of business, finance, and technology.