More than a month after declaring bankruptcy and the resultant closure of its North Aurora, Ill., plant, and receiving a stalking horse bid that offered some hope for the future of the company, Oberweis Dairy has found a winning bidder via auction in Hoffmann Dairy LLC, a subisidiary of Osprey Capital LLC. Osprey is the investment arm of the Hoffmann Family of Companies.
The agreement to purchase Oberweis is subject to approval by the U.S. Bankruptcy Court, with terms of the agreement not disclosed. A stalking horse bid for the company’s assets in late April by Brian Boomsma, who co-founded Chicago-based dairy and eggs producer Dutch Farms, was reportedly valued at $20 million.
Of note, the Hoffmann Family of Companies is committed to growing Oberweis in its existing and new markets, the announcement noted. The family-owned firm plans to invest in Oberweis, particularly in the North Aurora plant, where new ownership sees opportunity to enhance production capabilities and streamline operations.
Geoff Hoffman, co-CEO of the Hoffmann Family of Companies, told one local news outlet that he could not comment on potential job cuts at the plant, but that they expect to make it busier than it ever has been. When Oberweis announced it would close the plant, it was said that would result in the layoff of 127 employees.
Meanwhile, the company’s ice cream parlors would “absolutely” stay open with no plans to trim the workforce there, he said.
