Dean Foods has announced a definitive agreement to sell its Morningstar Foods division to Canadian dairy conglomerate Saputo Inc. for US$1.45 billion.
Morningstar Foods is a leading manufacturer of dairy and non-dairy and cultured products, including creams and creamers, ice cream mixes, whipping cream, aerosol whipped toppings, iced coffee, half and half, value-added milks, sour cream and cottage cheese.
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Dean Foods expects to realize $887 million in proceeds, net of taxes and expenses. The Company expects to use net proceeds to retire outstanding term debt, toward increasing its financial flexibility.