Dean Foods considers Spanish expansion

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Dean Foods, the US dairy giant, may be planning a Spanish dairy
acquisition. It has been reported that the company is looking to
begin production in southern Europe.

According to a local report, Dean Foods is interested in acquiring some of the French dairy co-operative 3A's Spanish assets.

The local publication suggested that the group is currently in talks to buy Spanish companies Lauki and EI-Prado Cervera. 3A is experiencing financial difficulties and these financial pressures may present Dean Foods with the opportunity to set up a large dairy group in the south of Europe. If the deal was to go ahead, the acquisition would create the second largest dairy company in Spain.

Meanwhile in the US, Dean Foods has announced that it will close its San Leandro milk processing plant. The group will consolidate milk production into its Berkeley farms plant in Hayward. The plant is set to close on 30 April as a result of decreasing volumes.

Dean Foods produces a full line of company-branded and private label dairy products such as milk and milk-based beverages, ice cream, coffee creamers, cream, cottage cheese and yoghurt. The company operates over 120 plants in the US and Spain, and employs approximately 28,000 people.

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