Bankrupt Dean Agrees to $425 Million Asset Bid From Dairy Co-op

Dean Foods Co. agreed to sell a large chunk of its business to Dairy Farmers of America Inc. after the top U.S. milk processor went broke amid declining consumption and competition from Walmart Inc.

After filing for Chapter 11 bankruptcy in November, the maker of Dairy Pure products has agreed to divest 44 of its fluid and frozen facilities as well as assets necessary to operate them, it said in a statement Monday. Separately, DFA said it would pay a base price of $425 million for the assets, as well as taking on various liabilities, without elaborating.

Dallas-based Dean’s losses ...