Deal for Dean Foods’ Meadow Gold Hawaii operations falls through

Dean Foods has announced that Industrial Realty Group has terminated the previously announced agreement in principle to buy Dean Foods’ Meadow Gold Hawaii operations, including the assets, rights, interests, and properties relating to Dean Foods’ Hilo and Honolulu facilities. As a result, the company intends to close operations at its Honolulu facility by April 30, 2020.

Following the termination of the agreement with Industrial Realty Group, the company has reached an agreement in principle with an interested party for the sale of Dean Foods’ Hilo facility as an ongoing business and related distribution branches on the Big Island, Kauai, and Maui, as well as the Meadow Gold Hawaii brand name and related intellectual property. Pursuant to the agreement, which is subject to final approval by the Bankruptcy Court, an interested party will acquire the assets, rights, interests, and properties relating to Dean Foods’ Meadow Gold Hawaii business except for the Honolulu facility.

“We are extremely disappointed that we were unable to finalize an agreement for Industrial Realty Group to acquire our Hawaii operations,” said Eric Beringause, president and CEO of Dean Foods. “This was a difficult decision but, ultimately, given the timeline of our Chapter 11 restructuring, we were not able to find a path forward that would enable our Honolulu operations to continue through our comprehensive court-supervised sale process. That said, we are pleased to have reached an agreement in principle for our Hilo facility and that an interested party intends to continue the plant’s operations and maintain the Meadow Gold Hawaii brand name.”

As previously announced on April 4, 2020, the U.S. Bankruptcy Court for the Southern District of Texas approved the sale, subject to entry of final agreed orders, of a substantial portion of Dean Foods’ business operations, including the sale of the assets, rights, interests, and properties relating to 44 of the company’s fluid and frozen facilities, to Dairy Farmers of America for $433 million. The court also approved the sale, subject to entry of final agreed orders, of the assets, rights, interests, and properties relating to eight additional facilities, two distribution branches, and certain other assets to Prairie Farms Dairy for $75 million in cash and the sale of Dean Foods’ facility in Miami to Mana Saves McArthur for $16.5 million. The court also approved Producers Dairy Foods’ purchase of Dean Foods’ Reno, Nev., facility for $3.7 million and its purchase of the Berkeley Farms trademark and related intellectual property for $3 million, as well as Harmoni’s acquisition of the company’s Uncle Matt’s business for $7.25 million. The company anticipates completing all transactions by early May.