Dean Foods To Sell Vegetable Business to Agrilink

Dean Foods Company has reached a definitive agreement to sell its vegetable operations, which include the Birds Eye brand, to Agrilink Foods, Inc. for approximately $400 million in cash plus Agrilink's aseptic foods business, which will be folded into Dean's Specialty business segment.

Howard Dean, chairman and CEO of Dean Foods, said that the company would use proceeds of the sale to acquire new dairies, to improve efficiencies of existing dairies, and to add volume through the introduction of innovative new products, like its ``Milk Chug'' single serve beverage.

Dean Foods is a leading dairy processor and distributor, producing a full line of branded and private label products, including fluid milk, ice cream and extended shelf life products that are sold under the Dean's and other regional brand names.

Agrilink Foods is a wholly owned subsidiary of Pro-Fac Cooperative. Together they produce and market processed food products, including fruits, vegetables, pickles and other foods.