Dean Foods to Sell Shares of Branded Dairy Unit

By CnAgri2012-08-08 19:06:22 Print

Dean Foods is joining the parade of food giants that are splitting up. The dairy company filed an IPO for its WhiteWave-Alpro unit, which sells branded milk and dairy products, including its soy, almond and coconut milk products. The unit sells under big brand names including Silk, Land O Lakes and Horizon Organic in the U.S.

According to Wall Street Journal, WhiteWave was the second-biggest of Dean's three units by sales and operating income during 2011, though a far distance from the biggest fresh dairy business.

WhiteWave will seek a $300 million IPO on the New York Stock Exchange, using the ticker WWAV. Its bankers are J.P. Morgan, Credit Suisse and Bank of America-Merrill Lynch.

The plan would leave Dean Foods holding 80% of the newly public WhiteWave following the IPO. That stake is expected to be sold after a 180-day lockup.

Dean Foods Chairman and CEO Gregg Engles, will take the same roles at WhiteWave giving up his Dean Foods CEO after the offering and eventually handing over his chairman role when the spinoff is completed. Engles will continue to earn a $1 million base salary.

In the IPO filing, WhiteWave says sales have risen from $1.2 billion in 2007 to $2 billion last year and touts its growth prospects. Its profit rose to $107.4 million from $79.1 million.