OpenGate Capital on Monday said it plans to buy a Wisconsin dairy processing plant and two dairy brands from Dean Foods Co.
The Century City investment firm said it has signed an agreement to buy the Waukesha, Wis. facility, which sells dairy products in Wisconsin, Illinois and Michigan supermarkets. The deal, terms of which were not disclosed, includes Dean Foods' Golden Guernsey and La Vaca Bonita brands.
OpenGate targets companies with well-known brands that have solid business fundamentals and potential for growth. OpenGate founder Andrew Nikou, a veteran of billionaire Tom Gores’ Platinum Equity, said that the Dean Foods deal "meets our mark on all counts."
“Not only is the brand a local icon renowned since 1930 for the highest quality and freshest milk products, but its facility is very efficient, and its managers are industry experts,” Nikou said in a statement.
Earlier this month, Dean Foods recorded a second-quarter loss after setting aside money to settle a lawsuit by small dairy farmers. Like much of the industry, the company has been facing higher costs for raw ingredients.
The purchase requires regulatory approval and is expected to close by the end of September.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- OpenGate Accelerates Deal Pace
- OpenGate Capital Buys Recycled Boxboard Companies
- OpenGate Backs EverZinc’s Add-on Acquisition of G.H. Chemicals Ltd. and Microzinc
- Fit to Print?
- Investment firm looks to prove metal with $150 million zinc deal
- L.A.’s OpenGate Capital to Acquire Jøtul Group
- Small Biz
- Another Shut Down