Wells’ Dairy Inc., Le Mars, Iowa is going to sell its milk plant to Dallas-based Dean Foods Co.
By divesting its fresh dairy business, Wells’ CEO Mike Wells said the family-owned company can concentrate solely on the production of its Blue Bunny ice cream and frozen novelties.
“Following extensive analysis, we have made a strategic decision to focus all of our efforts and resources on our core business of making quality ice cream,” Wells said. “This committed focus puts us in the best position to reach our goal to become a top 3 national brand in ice cream and frozen novelties and to ensure the long-term viability of the company.
Dean, a publicly traded company, is the largest U.S. processor and distributor of milk and other dairy products. Wells’ spokesman Dave Smetter said Dean plans to continue to operate the Le Mars milk plant, which has about 130 production workers and 50 employees who work in sales, drive trucks and provide other support functions.
Smetter said the sale of the fluid dairy and cultured dairy business also could affect as many as 15 corporate jobs at Wells’ new $26 million headquarters on the south end of town. Wells’ also operates two ice cream plants in Le Mars, where it is the largest employer, with more than 2,000 jobs.
“We’re in very sound financial condition. This is very much a strategic decision,” he said. “We see it as a very positive thing, both for Wells’ Dairy and its future and the LeMars community.”