FRANKLIN PARK, Ill., June 27 /PRNewswire/ — Dean Foods Company (NYSE: DF)
and Agrilink Foods, Inc., announced today that Dean Foods has purchased from
Agrilink its Nalley’s pickle business based in Tacoma, Washington. The
acquired business sells approximately $40 million annually of pickle, pepper
and relish products under the NALLEY’S and FARMAN’S brand names. Terms of the
transaction were not announced.
Agrilink Foods is a wholly-owned subsidiary of Agrilink
(Pro-Fac Cooperative – Nasdaq: PFACP), an agricultural marketing cooperative
based in Rochester, New York. Dean Foods, headquartered in Franklin Park,
Illinois is the nation’s largest pickle processor and a leading fluid milk and
dairy products processor.
Dean acquired all rights to Agrilink’s pickle business including certain
fixed assets, finished inventory, customer lists and other intangibles,
although Agrilink will retain all other products carrying the NALLEY’S brand
name including prepared canned meal products. Agrilink will continue to
contract pack Nalley’s pickle products for a period of two years at the
existing Tacoma processing plant, which Agrilink will retain and operate.
Under a related agreement, Agrilink will supply raw cucumbers grown in the
Northwestern U.S. to Dean Foods for a minimum ten-year period at market
pricing. The quantity of cucumbers to be supplied by Agrilink Cooperative
growers will increase over current volumes.
“The acquisition of Nalley’s Pickles continues Dean’s long-term strategy
of consolidating regional pickle brands to achieve large-scale cost
synergies,” stated Howard Dean, Chairman and Chief Executive Officer of Dean
Foods Company. “Although our pickle division has encountered some competitive
conditions over the past year, we are confident that this transaction will
result in immediate logistics and purchasing efficiencies with manufacturing
synergies to follow when production is consolidated.”
“We know that this business will be in good hands with Dean Foods,”
commented Agrilink president and chief executive officer Dennis M. Mullen.
“They already have a strong presence in this category and have the expertise
to continue growing the business. This will clearly have a very positive
effect on our members’ deliveries.”
Dean Foods ( http://www.deanfoods.com ) is one of the nation’s leading dairy
processors and distributors producing a full line of branded and private-label
products, including fluid milk, ice cream and extended-shelf-life products,
which are sold under the Dean Foods and other strong regional brand names.
Dean Foods is the industry leader in other food products, including pickles,
powdered non-dairy coffee creamers, aseptically packaged foodservice products,
and refrigerated dips and salad dressings. Total Dean Foods’ sales are
approximately $4 billion annually.
Agrilink Foods is a $1.2 billion dollar national food company which
processes and markets a variety of product lines of branded, private label and
foodservice products in 30 facilities located throughout the United States and
in Mexico. Included in Agrilink’s portfolio are the Birds Eye, Veg-All,
McKenzie, Comstock and Wilderness brands. Agrilink consists of more than 800
member growers, who process fruits, vegetables and popcorn through Agrilink
Foods and AgriFrozen.
SOURCE Dean Foods Company
Web site: http://www.deanfoods.com
Company News On-Call: http://www.prnewswire.com/comp/109161.htmlor fax, 800-758-5804, ext. 109161
CONTACT: Jim Greisinger of Dean Foods Pickle and SpecialtyProducts, 920-497-7131; or Bea Slizewski of Agrilink Foods,716-264-3189