Morningstar May Be Sold

News Editor

Dean Foods Co. is considering the sale of its Morningstar unit that produces milk products for retailers and restaurants.

Dean hasn’t identified a buyer yet for the segment, which makes and sells ice cream mixes, coffee creamers and whipped toppings, Jamaison Schuler, a spokesman for the Dallas-based company, said in an e-mail today.

Dean has struggled recently to boost profits at Morningstar and its Fresh Dairy Direct unit as the weak economy slowed dairy consumption and retailers discounted private-label milk, Chief Executive Officer and Chairman Gregg Engles said on Aug. 8.

“The industry has been through two and a half years of quite difficult economic conditions,” he said.

Dean will only sell Morningstar “if we can do so in a transaction that maximizes shareholder value and ensures the future success of the business,” Schuler said.

Source: Bloomberg

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