Two buyers interested in Oberweis Dairy
Oberweis Dairy Inc. has found a buyer for most of its operating assets, the company announced Tuesday afternoon.
But a private equity firm says it, too, wants to buy the dairy company.
If a bankruptcy court judge approves, Brian Boomsma would buy it, according to a news release from Oberweis President Adam Kraber. Boomsma is co-founder of the Chicago-based Dutch Farms dairy company.
“We are thrilled to have a business leader like Brian Boomsma interested in investing in Oberweis and enabling the company to continue to move forward and prosper. We continue to be grateful to our loyal customers, vendors, and committed employees who have supported us through this process,” Kraber said.
Dutch Farms is a stalking horse bidder, according to Kraber. A stalking horse bidder typically sets a minimum bar for pricing.
Late Tuesday afternoon, Hoffmann Family of Companies of Winnetka announced it wants to buy Oberweis.
“The Hoffmann family intends to make a competitive offer to buy the company and is confident they will deliver the highest bid, based on current due diligence,” its news release stated.
“Our vision is all about quality, legacy and longevity – we’re not looking to buy and flip businesses,” said Geoff Hoffmann, co-CEO of Hoffmann Family of Companies.
Oberweis filed for Chapter 11 reorganization bankruptcy on April 12.
It seeks debt relief while it continues to operate and pursue a sale of the business.
Kraber said the company expects to complete the reorganization and sale in late June.
Oberweis has been in business since 1927, run by the Oberweis family. Its headquarters is in North Aurora.
In its bankruptcy paperwork, the company cited declining milk consumption and “improvident” business decisions as reasons for the bankruptcy. It also announced it would lay off more than 100 workers at the North Aurora plant in June if it couldn’t find a buyer.