California Firm Purchasing Dean Foods’ Waukesha Plant

A California-based private equity firm is purchasing Dean Foods in Waukesha, according to a news release. OpenGate Capital will acquire Golden Guernsey and La Vaca Bonita brands in the purchase.

OpenGate is expected to close on the plant that is located at Delafield Street and Northview Road in the third quarter. The deal is subject to regulator approvals, according to the news release.

 “OpenGate seeks opportunities to acquire well-recognized brands with solid operations and business fundamentals,” said Andrew Nikou, OpenGate Capital Founder and Managing Partner. “This operation, including the Golden Guernsey brand, meets our mark on all accounts. Not only is the brand a local icon renowned since 1930 for the highest quality and freshest milk products, but its facility is very efficient, and its managers are industry experts. By adhering to our disciplined investment criteria, we are able to identify and leverage opportunities with high-potential brands such as Golden Guernsey.”

which settled a federal antitrust lawsuit that fought the company’s 2009 purchase of the plant from Foremost Farms USA because it controlled nearly 60 percent of milk sales, according to a March news release from Attorney General J.B. Van Hollen.

The lawsuit challenging the purchase was based on antitrust laws that claimed the purchase prevented retailers and school districts from benefiting from competition between the two companies, according to the release.

 “We are eager to collaborate with the existing Waukesha management team to expand the business and develop new product offerings,” said Michael Kraus, who led the transaction for OpenGate. “OpenGate is proud to carry-on the facility’s long-time tradition and steadfast reputation for providing the region with exceptional dairy products and service.”