Dean Foods puts White Wave-Alpro into public realm

US-based dairy giant Dean Foods has filed an initial public offering (IPO) for its WhiteWave-Alpro division. The arm sells branded milk and dairy products, which includes Silk soya drink, Land O Lakes butter and Horizon Organic milk in the US.  In 2011, WhiteWave was the second-biggest of Dean’s three units by sales and operating income, though a far distance from the biggest fresh dairy business, according to a report in The Wall Street Journal.

WhiteWave is looking for a $300 million (€243m) IPO on the New York Stock Exchange. The plan would leave Dean Foods with 80% of the newly public WhiteWave following the move, but that percentage is expected to be sold after six months.

Dean Foods chairman and CEO Gregg Engles, will take the same roles at WhiteWave giving up his Dean Foods CEO after the offering and eventually handing over his chairman role when the spinoff is completed. Gregg Tanner, who runs the fresh dairy segment, will be the new CEO of Dean Foods.

WhiteWave’s sales have risen from $1.2 billion in 2007 to $2 billion last year and profit rose to $107.4 million from $79.1 million. Risks listed in the IPO are its ties to Wal-Mart, which accounts for 18.3% of its sales and its top five customers making up almost 41% of its sales.