Dean Foods Co., the largest U.S. dairy processor, extended its weekly gain to 24 percent and reached a two-year high after its WhiteWave Foods Co. unit filed for an initial public offering.
WhiteWave, the maker of Silk almond milk, filed on Oct. 17 to raise as much as $320 million as Dean tries to generate cash to pay off debt. WhiteWave expects to contribute as much as $282 million of the proceeds from the offering and $885 million of new borrowings to Dallas-based Dean, which will use those funds to repay debt, a regulatory filing showed.
Dean gained 63 cents, or 3.5 percent, to $18.57 at 10:39 a.m. in New York on volume of 3.01 million shares. The 15-day average is 4.56 million. Volume was 13.4 million on Oct. 17 and 10.9 million yesterday. The price reached $18.63, the highest level since January 2010.
Dean also said last month it may sell its Morningstar unit, which makes dairy products for restaurants.