|Bid||0.6000 x 3200|
|Ask||0.0000 x 1000|
|Day's Range||0.7000 - 0.8480|
|52 Week Range||0.6900 - 6.1300|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 12, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||1.42|
Dean Foods, America's biggest milk producer, filed for Chapter 11 bankruptcy protection Tuesday. Following the surge in popularity of milk alternatives in recent years, the company's sales have plummeted.
(Bloomberg) -- Dean Foods Co., the biggest U.S. milk processor which filed for Chapter 11 bankruptcy protection Tuesday, has said it’s in advanced talks to sell assets to milk cooperative giant Dairy Farmers of America. Bondholders, however, aren’t convinced that’s a good deal.At a first-day bankruptcy hearing, an attorney for a third of the company’s bondholders said that while Dean is “focusing exclusively” on a combination with the co-op, that option won’t be “value-maximizing.” The deal may not even be feasible due to antitrust concerns, the attorney said at the hearing in front of Judge David Jones in U.S. bankruptcy court for the Southern District of Texas in Houston.“We don’t want a quick sale, a fire sale, without a true market check or opportunity for other potential bidders to put in a real proposal,” said Bob Britton, an attorney at Paul, Weiss, Rifkind, Wharton & Garrison LLP, which represents the group.The bondholder group approached Dean to offer alternatives, including capital to invest in a standalone restructuring plan and alternative financing. But the proposal “made no headway,” Britton said.When asked by the judge if the group had enough capital to buy Dean Foods, Britton’s answer was yes.Brian Resnick, an outside lawyer for Dean Foods, said the company’s looking forward to working with bondholders.‘Not Bothered’“I’m just going to sit back and watch,” Judge Jones said, responding to the company’s expressed willingness to engage with the bondholder group given their complaints about the sale. “I’m not bothered at all.”Dean ranks as the biggest U.S. dairy processor, employing about 15,000 people and delivering about 2.2 billion gallons a year of milk and other dairy products, according to its bankruptcy declaration. The company’s long list of institutional customers includes McDonald’s Corp., Starbucks Corp. and Target Corp.Dean has suffered as competition from almond, rice and soy milk eroded demand for conventional dairy. Retailers have also been using milk as a loss leader to bring customers in, putting pressure on the dairy giant’s margins. Losses deepened after the company’s biggest customer, Walmart Inc., built its own milk plant.Facing financial distress, Dean looked into selling all or parts of the company among other options to strengthen its balance sheet, according to the court filing. But the company faced an obstacle in its underfunded multi-employer pension plan, for which it might wind up owing more than $700 million. That stymied any hope of out-of-court transactions, and meanwhile results were deteriorating faster than Dean had forecast, the company said.With cash running short, Dean’s managers became concerned about “potentially ruinous customer flight’’ if the company couldn’t keep milk flowing to 30,000 school lunch rooms, thousands of coffee shops, fast-food restaurants and grocery stores. That sealed the decision to file for Chapter 11 protection, Dean said.The case is Southern Foods Group LLC, 19-36313, U.S. Bankruptcy Court for the Southern District of Texas (Houston).\--With assistance from Rick Green.To contact the reporters on this story: Lydia Mulvany in Chicago at email@example.com;Katherine Doherty in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: James Attwood at email@example.com, Millie Munshi, Simon CaseyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Dean Foods Co. General Counsel Kristy Waterman and Chief Financial Officer Gary Rahlfs officially filed documents Tuesday seeking to voluntarily restructure the Dallas-based food and beverage company under Chapter 11 of the U.
(Bloomberg) -- Dairy Farmers of America Inc, the biggest U.S. dairy cooperative, is in advanced talks to acquire U.S. milk processor Dean Foods Co. But other would-be buyers could emerge.While discussions are taking place between DFA and Dean, no agreement has been reached for the purchase of all or some of the Dallas-based company’s assets, Monica Massey, executive vice president and chief of staff at DFA, said in an emailed response to questions. She didn’t speculate on prospective bidders.A deal could be a lengthy process, including an antitrust review. Any transaction would require an “extensive review of Dean Foods’ assets, thorough due diligence and other conditions, including approval from the Department of Justice and the Bankruptcy Court,” Massey said. Dean intends to file bidding procedures with the court to conduct a sale.“We have been monitoring Dean Foods’ financial performance closely since the business began showing signs of distress and have been preparing for various scenarios, including a bankruptcy filing, in order to minimize the impact to DFA,” Massey said. “Our farmer leaders and management have built our cooperative to withstand a situation like this. Our members and employees will get paid, schools will get milk, and dairy products will remain on the shelves across the country.”Dean Foods is the biggest customer of the Kansas City-based cooperative, which has around 14,500 family farmer members around the country. DFA is focused on “ensuring we have secure markets for our members’ milk,” she said.While Americans may be drinking less conventional milk, 94% of U.S. households also keep it in their refrigerators, Massey said. The dairy category as a whole remains strong, with cheese and butter at all-time consumption highs. Americans ate 2.5% more dairy in August than they did the year before, and the retail market is worth over $100 billion, she said.To contact the reporters on this story: Lydia Mulvany in Chicago at firstname.lastname@example.org;Katherine Doherty in New York at email@example.comTo contact the editors responsible for this story: James Attwood at firstname.lastname@example.org, Patrick McKiernanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
NEW YORK , Nov. 12, 2019 /PRNewswire/ -- Kinsale Capital Group, Inc. (NASD: KNSL) will replace Dean Foods Company (NYSE: DF) in the S&P SmallCap 600 effective prior to the open of trading on Monday, November ...
Moody's Investors Service ("Moody's") downgraded Dean Foods Company's ("Dean") Probability of Default Rating (PDR) to D-PD from Caa2-PD following the company's Chapter 11 filing on 12 November, 2019. Dean's Corporate Family Rating (CFR) was downgraded to Ca from Caa2 and the senior unsecured notes were downgraded to Ca from Caa3.
U.S. stocks mostly ended higher on Tuesday as President Donald Trump suggests a trade deal could happen soon but did not offer much clarity on the possibility of a tariff rollback as part of the agreement.
U.S. stock markets finished with lackluster gains on Tuesday but enough to push markets to levels at or near records. President Donald Trump said the U.S. and China are close to completing "phase one" of their trade deal, but didn't offer any fresh details. The Dow Jones Industrial Average finished the session virtually unchanged at around 27,691, narrowly missing its 10th record close of 2019. Meanwhile, the Nasdaq Composite Index closed up 0.3% to end at 8,486.09, while S&P 500 index finished with a lackluster gain of 0.2% to 3,091, also missing a record finish. All closing levels for benchmarks are on a preliminary level. Meanwhile, in corporate news, Dean Foods Co. voluntarily filed for chapter 11 bankruptcy protection on Tuesday, with the dairy company saying it was working toward an "orderly" sale of the company. Trade in the stock was halted, but had fallen 79% year-to-date. Separately, shares of Tyson Foods Inc. stock rose 7.4% Tuesday, even after the meat producer reported fourth-quarter earnings and sales that missed estimates.
(Bloomberg) -- Top U.S. milk processor Dean Foods Co. filed for Chapter 11 bankruptcy and is in advanced talks with Dairy Farmers of America Inc. about a potential sale.Dean listed assets and liabilities of as much as $10 billion each in court papers filed in Houston, and said in a statement it has commitments for $850 million in bankruptcy financing from existing lenders led by Rabobank. The filing allows Dean to keep operating while it works on a plan to pay creditors and turn the business around.Losses have piled up after Dean’s biggest customer, Walmart Inc., built its own milk plant. Dean says it’s the largest U.S. processor of fresh fluid milk and other dairy products, but the company has been squeezed by fierce competition and the rising price of milk, which has eroded profit margins.Demand for cow milk has been weak, too, with nut milks and even bottled water cutting into its popularity. On top of that, retailers have been selling their own house brands of milk at a loss to increase store traffic, Hoai Ngo of Bloomberg Intelligence wrote in a note.Falling PricesDean shares have tumbled 79% this year, the worst performance among peers tracked by Bloomberg, and trading hadn’t resumed as of midday Tuesday. Its bonds dropped to fresh lows, plunging to as little as 14.5 cents on the dollar, according to Trace pricing data. As recently as January of last year, the bonds were trading at full value.The Dallas-based company’s filing and debtor-in-possession financing reduces the recovery value for debt holders and “could drive prices lower,” Ngo wrote.A transaction between Dean and Dairy Farmers of America is still under review, and no agreement for the purchase of Dean’s assets has been reached, DFA Executive Vice President Monica Massey said in an emailed statement to Bloomberg. Other bidders may emerge during the bankruptcy process, Massey said, adding that DFA’s offer would be contingent upon various approvals, including a review of Dean Foods’ assets and clearance from U.S. antitrust regulators.DFA monitored Dean’s financial performance “closely since the business began showing signs of distress” and began “preparing for various scenarios, including a bankruptcy filing, in order to minimize the impact,” Massey said.According to Rabobank, Dairy Farmers of America is the sixth-biggest dairy company in the world by sales, and Dean Foods is No. 11.Pension ProblemThe Central States Southeast & Southwest Areas Pension Plan is listed as the company’s largest unsecured creditor, with a $722.4 million claim alongside Dean’s $700 million of unsecured notes that mature in 2023.Dean’s bankruptcy was the “clearest option” for addressing the pension and debt load, Wells Fargo equity analyst John Baumgartner said in a note. Challenges in the milk category on top of the unfunded pension liabilities were “too much to overcome,” he said.Dean has been hemorrhaging executives as well as cash, with Chief Financial Officer Jody Macedonio and general counsel Russell Coleman stepping down in September. Vice President of Commercial Finance Scott Mills joined another company last week.Chief Executive Officer Eric Beringause, who joined the company about three months ago, said the current path, led by a new senior management team, would lead to a turnaround.Dean expects to report a cash loss of $286 million for a 10-month time-frame through August of 2020, according to recent financial projections. The budget also predicts around $15 million of cash on the balance sheet by the end of the period.Davis Polk & Wardwell LLP and Norton Rose Fulbright are serving as legal advisers to Dean Foods, while Evercore is serving as investment banker, and Alvarez & Marsal is its financial adviser.The case is Dean Foods Company, 19-36314, U.S. Bankruptcy Court for the Southern District of Texas (Houston).Get MoreClick here for statementIn light of the bankruptcy filing, the company has canceled its earnings call originally scheduled for Tuesday morning.(Updates with comments from Dairy Farmers of America and company projections, starting in the seventh paragraph)\--With assistance from Sebastian Boyd, Rudy Ruitenberg and Jeremy Hill.To contact the reporters on this story: Lydia Mulvany in Chicago at email@example.com;Katherine Doherty in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rick Green at email@example.com, ;James Attwood at firstname.lastname@example.org, Nicole BullockFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The company is in “advanced discussions” with Dairy Farmers of America, a cooperative that represents more than 8,500 farms.
Today is the big day for the long-awaited Disney+ streaming service from The Walt Disney Company (DIS), marking its bid for a piece of the home entertainment space.
The Texas-based firm said it was in talks over a potential sale of its assets with Dairy Farmers of America, a company owned by farmers. Dean Foods has been struggling in recent years as health-conscious U.S. consumers shift to non-dairy and private-label alternatives. "We continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption," Chief Executive Officer Eric Beringause said.
Dean Foods and substantially all of its subsidiaries initiated a voluntary bankruptcy proceedings in the Southern District of Texas, the Dallas-based company said in a press release. At the same time the company is in talks with the Dairy Farmers of America to explore a sale of substantially all of its assets. In the interim, Dean Foods is operating as usual after receiving a commitment of around $850 million in debtor-in-possession financing from some of its lenders.
U.S. stocks edged higher at the opening bell on Tuesday ahead of a speech by President Donald Trump that is expected to provide further insights on progress toward a partial U.S.-China trade deal. The S&P 500 was up 0.1% to 3,091. The Dow Jones Industrial Average advanced 6 points, or less than 0.1%, to around 27,698. The Nasdaq Composite rose 0.2% to 8,479. Reuters reported that Trump is also expected to put off for another six months a decision on whether to place tariffs of up to 25% on European auto imports. In company news, Dean Foods shares were in focus after the dairy manufacturer declared bankruptcy.
Dean Foods Co. has voluntarily filed for Chapter 11 bankruptcy protection on Tuesday, with the dairy company saying it was working toward an "orderly" sale of the company. The company, which brands include DairyPure, Land O Lakes and Lehigh Valley Dairy Farms, said it has secured commitments for $850 million in debtor-in-possession (DIP) financing to support its operations during the process. The company said it has been in advanced discussions with the Dairy Farmers of America Inc. regarding the potential sales of substantially all of its assets. "The actions we are announcing today are designed to enable us to continue serving our customers and operating as normal as we work toward the sale of our business," said Chief Executive Eric Beringause. "Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption." The stock, which was halted for news, had closed Monday at 80 cents. It had plunged 79% year to date, while the S&P 500 has climbed 23%.
DALLAS, Nov. 12, 2019 /PRNewswire/ -- Dean Foods Company (DF) ("Dean Foods" or the "Company") today announced that it and substantially all of its subsidiaries have initiated voluntary Chapter 11 reorganization proceedings in the Southern District of Texas. The Company intends to use this process to protect and support its ongoing business operations and address debt and unfunded pension obligations while it works toward an orderly and efficient sale of the Company. Dean Foods also announced that it is engaged in advanced discussions with Dairy Farmers of America, Inc. ("DFA") regarding a potential sale of substantially all assets of the Company.
Dean Foods, owner of brands including Land O' Lakes and Tuscan, filed under the bankruptcy laws and said it was in talks to sell its assets to Dairy Farmers of America.
“Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption,” Eric Beringause, the company’s newly installed chief executive said in a statement. The Dallas-based group, which traces its roots back 1925 when its founder Samuel Dean purchased an evaporated milk processing plant in Illinois, said it was in advanced discussions to sell substantially all its assets to Dairy Farmers of America, a national milk marketing co-operative that counts more than 14,000 dairy farmers as members.
Dean Foods (NYSE: DF ) announces its next round of earnings this Tuesday, November 12. Here is Benzinga's everything-that-matters guide for the Q3 earnings announcement. Earnings and Revenue Wall Street ...