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Published on .

(April 5, 2001) -- Suiza Foods Corp., Dallas, and Dean Foods Co., Franklin Park, Ill., today announced a merger agreement that will result in a new national dairy and specialty food company with $10 billion in annual revenue. The merged company, Dean Foods, will be headquartered in Dallas and headed by current Suiza Foods chairman and CEO, Gregg Engles. Howard Dean, chairman and CEO of the former Dean Foods, will serve as chairman of the board.

Credit Suisse First Boston analyst Dave Nelson said the merger "creates a powerhouse, which will now account for about 30% market share after six dairies are sold to alleviate antitrust concerns."

Among the brands currently marketed by the two companies are kidsmilk and fitmilk, value-added milk brands recently introduced by Suiza, as well as various regional milk brands such as Milk Chugs, Deans and McArthur that Dean's has been building over the last few years through packaging innovation and advertising.-- Stephanie Thompson

Copyright April 2001, Crain Communications Inc.

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