Private equity firm Hoffmann Family of Cos. on May 29 purchased Oberweis Dairy in a bankruptcy auction.
Terms of the auction were not disclosed, but media reports state the private equity firm’s offer bested that of a stalking horse bid from Brian Boomsa, a local Illinois prominent business owner and successful entrepreneur, as well as any other offer. According to court filings, Boomsa offered approximately $20 million for the Oberweis assets.
On Friday, April 12, Oberweis announced that it was filing for Chapter 11 reorganization, as well as the closure of its North Aurora, Ill., plant. The intent of this filing was to seek debt relief while the company continues to operate in the ordinary course of business and pursue a sale of the business.
Florida-based Hoffmann Family of Cos. co-CEO Geoff Hoffmann told the Chicago Sun-Times on May 29 that the dairy plant “will stay open, receive numerous upgrades and hopefully expand capacity.” He would not comment on potential job cuts at the plant, but the firm plans to make it “busier than it’s ever been.”
Hoffmann added Oberweis’ ice cream parlors “will absolutely stay open” and that there were no plans to cut store employees, the Sun Times reported.
The transaction must still be approved by the U.S. bankruptcy court.