DALLAS, Sept. 6, 2019 /PRNewswire/ -- Dean Foods
Company (NYSE: DF) ("Dean Foods" or the "Company") today announced
that its Board of Directors has concluded its previously announced
review of strategic alternatives.
Since February 2019, the Board, in
consultation with its financial and legal advisors, has been
engaged in a comprehensive review of strategic alternatives,
including a possible sale of the Company. The Board has determined
that the execution of its standalone operating plan under the
leadership of Eric Beringause, who
was appointed as President and CEO on July
29, 2019, will provide the best opportunity to enhance
long-term shareholder value.
"The Board conducted a wide-ranging review of alternatives for
our business and determined that the continued transformation of
Dean Foods under Eric's leadership provides the best means for
creating value for the Company, our shareholders and other
stakeholders," said Jim L. Turner,
Non-Executive Chairman of the Board. "Eric is an industry veteran
with more than three decades of transformational leadership and
operational experience in the food, beverage and consumer products
industries, and we are confident that his oversight of and
adjustments to our operating plan will build on the current
momentum and drive improved performance in the business."
"Dean Foods is the largest processor and direct-to-store
distributor of fresh fluid milk and other dairy case products in
the United States, with an
operational footprint that includes 60 manufacturing facilities
strategically located across the country and a fleet of more than
5,000 trucks that distribute products in nearly all 50 states,"
said Mr. Beringause. "With this strong foundation in place, we will
move forward with an increased focus on our customers and leverage
our many competitive advantages - including our portfolio of strong
national brands, extensive private label capabilities, category
leading position and our uncompromising commitment to quality,
safety and service - to drive profitable volume. We are also
continuing to execute on our cost-savings and supply chain
productivity programs, designed to enable Dean Foods to be more
agile and cost-efficient in the marketplace. As we implement these
initiatives, we remain focused on maintaining the highest levels of
quality, service and value that our customers have come to expect
and that are paramount to our success."
The Company recently enhanced its liquidity by securing
additional commitments to increase its senior secured revolving
credit facility to $350 million.
Together with its existing $450
million accounts receivable securitization facility, Dean
Foods has flexible, low-cost access to capital that will allow it
to pursue its operating plan.
The Company intends to provide details on its go-forward
strategy when it reports third quarter 2019 earnings in early
November.
About Dean Foods
Dean Foods is a leading food and
beverage company and the largest processor and direct-to-store
distributor of fresh fluid milk and other dairy and dairy case
products in the United States.
Headquartered in Dallas, Texas,
the Dean Foods portfolio includes DairyPure®, the
country's first and largest fresh, national white milk brand, and
TruMoo®, the leading national flavored milk
brand, along with well-known regional dairy brands such as
Alta Dena®,
Berkeley Farms®, Country
Fresh®, Dean's®,
Friendly's®, Garelick Farms®,
LAND O LAKES®* milk and cultured products,
Lehigh Valley Dairy Farms®,
Mayfield®, McArthur®, Meadow
Gold®, Oak Farms®,
PET®**, T.G. Lee®,
Tuscan® and more. Dean Foods also has a joint
venture with Organic Valley®, distributing fresh
organic products to local retailers. In all, Dean Foods has more
than 50 national, regional and local dairy brands as well as
private labels. Dean Foods also makes and distributes ice cream,
cultured products, juices, teas, and bottled water. Approximately
15,000 employees across the country work every day to make Dean
Foods the most admired and trusted provider of wholesome,
great-tasting dairy products at every occasion. For more
information about Dean Foods and its brands, visit
www.deanfoods.com.
*The LAND O LAKES brand is owned
by Land O'Lakes, Inc. and is used by license.
**PET is a trademark of Eagle Family Foods Group LLC, under
license.
Some of the statements made in this press release are
"forward-looking" and are made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995,
including statements relating to: (1) our financial forecast,
including projected sales (including specific product lines and the
Company as a whole), total volume, price realization, profit
margins, net income, earnings per share and free cash flow, (2) the
Company's regional and national branding and marketing initiatives,
(3) the Company's innovation, research and development plans and
its ability to successfully launch new products or brands, (4)
commodity prices and other inputs and the Company's ability to
forecast or predict commodity prices, milk production and milk
exports, (5) the Company's enterprise-wide cost productivity plan
and other cost-savings initiatives, including plant closures and
route reductions, and its ability to achieve expected savings, (6)
planned capital expenditures, (7) the status of the Company's
litigation matters, (8) the Company's plans related to its
capital structure, (9) the Company's dividend policy, (10) possible
repurchases of shares of the Company's common stock, and (11)
potential acquisitions or dispositions. These statements involve
risks and uncertainties that may cause results to differ materially
from those set forth in this press release, including the risks
disclosed by the Company in its filings with the Securities and
Exchange Commission. Financial projections are based on a number of
assumptions. Actual results could be materially different
than projected if those assumptions are erroneous. The cost
and supply of commodities and other raw materials are determined by
market forces over which the Company has limited or no control.
Sales, operating income, net income, debt covenant compliance,
financial performance and earnings per share can vary based on a
variety of economic, governmental and competitive factors, which
are identified in the Company's filings with the Securities and
Exchange Commission, including the Company's most recent Forms 10-K
and 10-Q. The Company's ability to profit from its branding and
marketing initiatives depends on a number of factors including
consumer acceptance of its products. The declaration and
payment of cash dividends under the Company's dividend policy
remains at the sole discretion of the Board of Directors and will
depend upon its financial results, cash requirements, future
prospects, restrictions in its credit agreements and debt covenant
compliance, applicable law and other factors that may be deemed
relevant by the Board. All forward-looking statements in this press
release speak only as of the date of this press release. The
Company expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any such statements to
reflect any change in its expectations with regard thereto or any
changes in the events, conditions or circumstances on which any
such statement is based except as required by law.
CONTACT: Investor Relations/External Communications please
contact +1 214-303-3438. Media please contact +1 214-721-7766
or media@deanfoods.com.
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SOURCE Dean Foods Company