India, Feb. 18 -- Dairy Farmers of America or DFA on Tuesday inked an agreement with bankrupt diary company Dean Foods Co. to become the Stalking Horse Bidder, in a court-supervised sale process, to acquire a substantial portion of Dean's assets and business.

While filing for bankruptcy in November last year, Dean Foods had said it was in advanced discussions with the farmer-owned Cooperative regarding a potential sale of substantially all assets of the company. Dean Foods is already a significant customer of DFA over the past 20 years.

Under the asset purchase agreement, the Stalking Horse Bidder has agreed to acquire 44 of Dean's facilities and associated direct store delivery system, as well as certain corporate and other assets and ...