Dairy Famers of America has agreed to buy 44 plants from Dean Foods for $425 million, the Kansas City, Kansas-based cooperative announced Monday.
Dean Foods, America’s largest milk producer, filed for Chapter 11 bankruptcy in November.
The company has struggled with consumers turning to nondairy milk and other alternatives.
Dallas-based Dean Foods has reported a net loss in seven of its last eight quarters.
DFA said the deal will help its member farmers.
“It is important to ensure continued secure markets for our members’ milk and minimal disruption to the U.S. dairy industry,” Rick Smith, CEO of Dairy Farmers of America, said in a press release.