Dairy consolidation continued at the close of a shareholder meeting yesterday at Broughton Foods Co. (Marietta, OH), where an amended stock-swap plan to be acquired was approved. Broughton and a subsidiary of Suiza Foods Corp. (Dallas, TX) may have finally overcome government objections in order to pass the merger.
Modifications to the merger plan were partly driven by March objections by the U.S. Dept. of Justice Antitrust Div., on the grounds that "the proposed acquisition would result in higher prices for milk sold to school districts in Kentucky."
Broughton Foods Company is a leading manufacturer and distributor of fresh milk and dairy products in Michigan, Ohio, West Virginia, Kentucky, Tennessee and parts of the eastern United States. The company has four divisions.
Boughton's Dairy Division, with its raw milk processing plant based in Marietta, OH, manufactures and distributes a full line of fresh milk and related products and also distributes brand name dairy and non- dairy foods.
The Foods Division, with an ultra high temperature (UHT) plant based in Charleston, WV, processes a variety of extended life products, including half-and-half, sour cream, dips, dressings, aerosol toppings, whipped cream, coffee cream, table cream, non-dairy creamers and whipped toppings.
The Southern Belle Division with its raw milk processing plant in Somerset, KY, manufactures and distributes a full line of fresh milk and other products and also distributes dairy and non-dairy foods.
The Londons Farm Dairy Division, with its raw milk processing plant in Port Huron, MI, manufactures and distributes a full line of fresh milk and other products, while its Burton, MI, plant produces a variety of ice cream products.