DALLAS, May 10 /PRNewswire/ — Suiza Foods Corporation (NYSE: SZA) today
announced it has received a second request from the Department of Justice
regarding its proposed merger with Dean Foods (NYSE: DF). On April 5, 2001,
Suiza and Dean announced a definitive agreement under which the two companies
will merge to form a national dairy and specialty foods company with
$10 billion in revenue.
The Hart-Scott Rodino application was filed with the government on
April 9, 2001. The company noted that it anticipated a full regulatory review
and expected to receive this second request. The company is prepared to work
diligently with the Department of Justice to resolve any potential regulatory
concerns.
The companies have carefully analyzed the transaction for areas of overlap
and, based on their analysis, have identified the operations of six plants in
five states that will be sold to resolve potential anti-trust problems and to
facilitate approval for this pro-competitive transaction. The company expects
the merger to be approved in the third or fourth quarter of 2001 and believes
that the merger plan preserves competition, while providing benefits to dairy
farmers, consumers and the entire industry.
About Suiza Foods
Suiza Foods Corporation, based in Dallas, Texas, is the nation’s leading
fluid dairy processor and distributor, producing a full line of company-
branded and customer-branded products. National brands include International
Delight(R), Second Nature(R), Naturally Yours(R), Mocha Mix(R), Sun Soy(TM),
kidsmilk(TM) and fitmilk(R). Regional brands consist of Adohr Farms(R),
Barbe’s(R), Brown’s Dairy(TM), Broughton(R), Country Fresh(R), Dairymen’s(R),
Flav-O-Rich(R), Garelick Farms(TM), Lehigh Valley Farms(R), London’s(R),
Meadow Gold(R), Model Dairy(TM), Oak Farms(R), Robinson(R), Schenkel’s All
Star Dairy(TM), Schepps(R), Shenandoah’s Pride(R), Suiza(TM), Louis
Trauth(TM), Tuscan(R), Velda Farms(R) and West Lynn Creamery(R), as well as
Celta(R) in Spain. Suiza also sells products under partner or licensed brands
in certain regions, including Borden(R), Lactaid(R), Foremost(R) and Pet(R).
Additionally, the company owns approximately 43% of Consolidated Container
Company, one of the nation’s largest manufacturers of rigid plastic
containers.
Some of the statements in this press release are “forward-looking” and are
made pursuant to the safe harbor provision of the Securities Litigation Reform
Act of 1995. These “forward-looking” statements include statements relating
to (1) when the companies expect to close the proposed transaction and (2) the
level of divestitures necessary to obtain regulatory approval. These
statements involve risks and uncertainties which may cause results to differ
materially from those set forth in these statements. The ability to close the
proposed transaction in the third or fourth quarter is subject to receipt of
shareholder approval and regulatory approval. The level of divestitures
necessary to obtain regulatory approval of the transaction is subject to the
extent of competition in the various markets in which the combining companies
operate, as determined by the Department of Justice, other regulatory
authorities and potentially, state and federal courts. Other risks affecting
the business of the companies are identified in their filings with the
Securities and Exchange Commission, including the Suiza Foods Annual Report on
Form 10-K for the year ended December 31, 2000 and the Dean Foods Annual
Report on Form 10-K for the year ended May 28, 2000. All forward-looking
statements in this press release speak only as of the date hereof. Suiza
Foods and Dean Foods expressly disclaim any obligation or undertaking to
release publicly any updates or revisions to any such statements to reflect
any change in their expectations or any changes in the events, conditions or
circumstances on which any such statement is based.
Other Legal Information
Suiza Foods and Dean Foods expect to file with the SEC a joint proxy
statement/prospectus and other relevant documents concerning the proposed
transaction. Investors are urged to read the joint proxy statement/prospectus
when its becomes available and any amendments or supplements to the joint
proxy statement/prospectus as well as any other relevant documents filed with
the SEC, because they will contain important information concerning the
proposed transaction. Investors will be able to obtain the joint proxy
statement/prospectus and other documents filed with the SEC free of charge at
the SEC’s website (http: //www.sec.gov). In addition, the joint proxy
statement/prospectus and other documents filed by Suiza Foods and Dean Foods
with the SEC may be obtained free of charge by contacting Suiza Foods, 2515
McKinney Avenue, Suite 1200, Dallas, Texas 75201, Attn: Investor Relations
(tel 214-303-3400) or Dean Foods, 3600 North River Road, Franklin Park,
Illinois 60131, Attn: Investor Relations (tel 847-678-1680).
Suiza, Dean and their respective directors and executive officers may be
deemed to be participants in the solicitation of proxies from the stockholders
of Suiza and Dean in favor of the transaction. The directors and executive
officers of Suiza and their beneficial ownership of Suiza common stock are set
forth in the proxy statement for the May 17, 2001 annual meeting of Suiza.
The directors and executive officers of Dean and their beneficial ownership of
Dean common stock are set forth in the proxy statement for the 2000 annual
meeting of Dean. You may obtain the proxy statements of Suiza and Dean free
of charge at the SEC’s website (http://www.sec.gov). Stockholders of Suiza
and Dean may obtain additional information regarding the interest of such
participants by reading the joint proxy statement/prospectus when it becomes
available.
SOURCE Suiza Foods Corporation
CONTACT: financial, Cory Olson, 214-303-3645, or P.I. Aquino,
214-303-3437, or media, Richard Coyle or Owen Blicksilver, 212-687-8080, all
of Suiza Foods Corporation/