Dean selling original Suiza plant

Dairy Foods, Dec, 2002

DALLAS--Dean Foods Co. has entered into an agreement to sell its Puerto Rico dairy operations. Dean has also disclosed more rationalization, including the closure of a Morningstar division plant in Tempe Ariz., and the restructuring of the Country Fresh Operations in Toledo, Ohio.

Dean plans to sell the Puerto Rican holdings to Grupo Gloria, a Peruvian conglomerate, for a cash purchase price of approximately $122 million. The operations consist or five companies including: Suiza Dairy Corporation, Suiza Fruit Corporation, Neva Plastics Manufacturing Corp., Garrido y Compania, LLC and Garido Alto Grande Corp. Suiza Dairy was the first dairy company purchased by the legacy Suiza Foods Co. Sale closing is expected on or before December 31.

At Country Fresh, the Toledo plant's milk and soft serve ice cream processing capacity will be transferred to another Country Fresh plant located within an approximate 65-mile radius. Distribution and sales operations out of the Toledo location are to remain uninterrupted. The restructuring includes a staff reduction of approximately 70 positions.