Dairy Farmers of America (DFA), a farmer-owned cooperative, will acquire production assets of Dean Foods including liabilities for a consideration of $425 million.
Dean Foods filed for Chapter 11 Bankruptcy protection in November claiming extensive losses on dairy products due to reduced demand from consumers.
In commenting on the transaction, the CEO of Dean Food, Eric Beringause stated “we have had a relationship with DFA over the past twenty years and we are confident in their ability to succeed in the current market and serve our 
customers with the same commitment to quality and service they have come to expect.”
The transaction must be approved by the Bankruptcy court and will be subject to a higher offer. The Department of Justice has apparently begun probing the transaction and accordingly DOJ approval will be required.