WhiteWave Foods Announces Sale of Assets to Morningstar Foods
Transaction to Occur as Part of Dean Foods Company Sale of Morningstar
Division to Saputo Inc.
DALLAS -- December 03, 2012
The WhiteWave Foods Company (the “Company”) (NYSE: WWAV) today announced that
it had agreed to sell certain assets owned by the Company to Morningstar Foods
for $60 million, net of taxes, in connection with the separately announced
sale by Dean Foods Company of its Morningstar business to Saputo Inc.
The Company has agreed to terminate an option to purchase plant capacity and
property at a Morningstar facility in Frederick, Md. The Company has also
agreed to sell manufacturing equipment used to produce certain WhiteWave
products located at the Morningstar Sulphur Springs, Texas, plant to
Morningstar. WhiteWave and Morningstar will continue their long-standing
commercial relationship in which Morningstar manufactures certain products for
the Company with the equipment being sold. This sale is not expected to change
the economic terms of the Company’s co-packing arrangement with Morningstar.
In addition, the Company and Morningstar have agreed to modify certain terms
of existing intercompany commercial agreements between the two companies.
These modifications are not expected to have a material effect on the Company.
WhiteWave will continue its business relationship with Saputo Inc. pursuant to
which Saputo manufactures and sells WhiteWave products in Canada.
"WhiteWave is pleased to continue its relationship with Morningstar, which
will soon become part of the Saputo organization," said Gregg Engles, Chairman
and CEO of The WhiteWave Foods Company. “We will use the net proceeds of $60
million after taxes to reduce outstanding debt, which will in turn allow us
greater flexibility to continue to pursue our strategic growth plans.”
ABOUT THE WHITEWAVE FOODS COMPANY
The WhiteWave Foods Company is a leading consumer packaged food and beverage
company that manufactures, markets, distributes, and sells branded Plant-based
Foods and Beverages, Coffee Creamers and Beverages, and Premium Dairy products
throughout North America and Europe. The Company is focused on providing
consumers with innovative, great-tasting food and beverage choices that meet
their increasing desires for nutritious, flavorful, convenient, and
responsibly produced products. The Company’s widely-recognized, leading brands
distributed in North America include Silk® Plant-based Foods and Beverages,
International Delight® and LAND O LAKES® Coffee Creamers and Beverages, and
Horizon Organic® Premium Dairy products. Its popular European brands of
Plant-based Foods and Beverages include Alpro® and Provamel®
Some of the statements in this press release are “forward-looking” and are
made pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. These “forward-looking” statements include
statements relating to, among other things, anticipated use of proceeds from
Morningstar-sale related agreements and the effect of the amendments to the
commercial arrangements on the Company's business. These statements involve
risks and uncertainties that may cause results to differ materially from the
statements set forth in this press release. The outcome of these statements
depends on a variety of factors, including whether the Morningstar sale is
completed and whether there are unanticipated effects on the Company's
business related to the modification of the commercial arrangements, many of
which are beyond the Company’s control and which are described in the
Company’s filings with the Securities and Exchange Commission. The
forward-looking statements in this press release speak only as of the date of
this release. The Company expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to such statements to reflect any
change in its expectations with regard thereto or any changes in the events,
conditions or circumstances on which any such statement is based.
The WhiteWave Foods Company
Molly Keveney, +1-303-635-4529
Dave Oldani, +1-214-721-7648
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