USA: Winnetka-Based Private Equity Firm Acquires Oberweis Dairy in Bankruptcy Auction
Source: The DairyNews
In a strategic acquisition, the Hoffmann Family of Companies, a private equity firm headquartered in Winnetka, has successfully purchased Oberweis Dairy through a bankruptcy auction held this Wednesday.
The acquisition saw Hoffmann's investment arm, Osprey Capital, outbidding Brian Boomsma, the owner of Dutch Farms, which is recognized for its egg and dairy operations.
Oberweis Dairy, a prominent name known for its distinctive milk in glass bottles and ice cream shops, was previously under a stalking horse bid by Boomsma for around $20 million. This type of bid sets the initial price in bankruptcy proceedings and was part of the company's reorganization plan following its Chapter 11 filing earlier this year.
Geoff Hoffmann, co-CEO of Hoffmann Family of Companies, shared with the Sun-Times that the North Aurora plant, initially slated for closure and layoffs, will now remain operational. Plans are underway for upgrading and potentially expanding the facility, which aims to surpass its previous operational capacity. Hoffmann also confirmed that Oberweis' ice cream parlors are set to remain open with no anticipated layoffs at these retail locations. Further, expansion plans are in place to introduce more stores in Chicago and new markets.
The tumultuous period for Oberweis Dairy appears to be stabilizing with this new ownership, which emphasizes growth and the retention of over 1,000 jobs, aiming to steer the company towards a prosperous future. This acquisition not only preserves a traditional business with deep roots dating back to 1927 but also aligns with Hoffmann's strategy of investing in companies with strong brand reputations and family values.
Oberweis Dairy, a prominent name known for its distinctive milk in glass bottles and ice cream shops, was previously under a stalking horse bid by Boomsma for around $20 million. This type of bid sets the initial price in bankruptcy proceedings and was part of the company's reorganization plan following its Chapter 11 filing earlier this year.
Geoff Hoffmann, co-CEO of Hoffmann Family of Companies, shared with the Sun-Times that the North Aurora plant, initially slated for closure and layoffs, will now remain operational. Plans are underway for upgrading and potentially expanding the facility, which aims to surpass its previous operational capacity. Hoffmann also confirmed that Oberweis' ice cream parlors are set to remain open with no anticipated layoffs at these retail locations. Further, expansion plans are in place to introduce more stores in Chicago and new markets.
The tumultuous period for Oberweis Dairy appears to be stabilizing with this new ownership, which emphasizes growth and the retention of over 1,000 jobs, aiming to steer the company towards a prosperous future. This acquisition not only preserves a traditional business with deep roots dating back to 1927 but also aligns with Hoffmann's strategy of investing in companies with strong brand reputations and family values.
