Dean Foods announced Wednesday that it was exploring the sale of its Morningstar unit as the company takes steps to reduce its debt.
The Morningstar division sells milk and other dairy products under various regional brands, including Tuscan Dairy in New York and Berkeley Farms in Northern California.
“We have not yet identified a buyer for Morningstar, but we know this business possesses an attractive portfolio in a growing marketplace and a top-notch management team,†Dean Foods said in a statement.
Shares in Dean Foods were temporarily suspended Wednesday afternoon after Reuters reported that Dean had hired Evercore Partners for its sale, which may bring in more than $1 billion. The shares were up about 5 percent in late afternoon trading.
A company spokeswoman did not immediately respond to a call seeking comment.
Dean Foods' unit is not related to the MorningStar Farms line of meatless products, which is owned by Kellogg.
The au ction of Morningstar comes as Dean Foods tries to reduce debt.
In early August, Dean Foods said it had filed a registration with the Securities and Exchange Commission to sell 20 percent of stock in its WhiteWave-Alpro division. The WhiteWave unit â€" whose products include Silk soy milk, Horizon Organic dairy products and International Delight creamers â€" are not part of the Morningstar business that is up for sale.
