Oberweis Dairy says it found two potential buyers following Chapter 11 bankruptcy
Oberweis Dairy headquarters in North Aurora. The company is known for its ice cream and glass-bottled milk.
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Two Chicago area suitors have emerged to buy Oberweis Dairy — a week after the company, known for its ice cream stores, filed for Chapter 11 bankruptcy protection and plans to lay off 127 workers.
Brian Boomsma, owner of the family-owned dairy and egg business Dutch Farms in Pullman, made a stalking horse bid to buy all operating assets of Oberweis, according to Oberweis President Adam Kraber. A stalking horse bidder makes the first offer in bankruptcy proceedings, setting the initial price.
Financial terms of the deal were not disclosed. The purchase is subject to bankruptcy code and court approval, Kraber said in an email Tuesday.
Kraber also said Boomsma's plan is to operate and grow the company. Boomsma and his brother, Brian, founded Dutch Farms in 1987, following in the footsteps of their father, Archie, according to the company’s website.
“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,” Kraber said.
The North Aurora-based company expects the sale to be finalized by late June, when Oberweis will come under new ownership after a reorganization.
However, late Tuesday private equity firm Hoffmann Family of Cos. in Winnetka also announced interest in buying Oberweis, through its investment arm Osprey Capital.
“Our vision is all about quality, legacy and longevity — we’re not looking to buy and flip businesses," Hoffmann co-CEO Geoff Hoffmann said in a statement.
Suzanne Jacob, chief marketing officer of Hoffmann Family of Cos., said the firm is confident it will be the highest bidder. Boomsma’s offer is not a done deal, she said.
Hoffmann announced its interest in buying Oberweis partly to “calm the fears of employees so they don’t leave, because they’re the company’s best asset,” Jacob said.
In a court filing last week, Karber said the company would continue to operate while seeking a buyer. That route would create the best value to creditors and preserve more than 1,000 jobs, he said in a court declaration.
Oberweis employs about 1,100 people, including many part-time workers at its stores. In the summer, when ice cream demand peaks, its workforce often swells to more than 1,500. It was not clear if the company plans to close any ice cream stores.
Oberweis Dairy is owned by the family of Republican state politician Jim D. Oberweis.