The nation's largest milk processor, Dean Foods, won approval from a bankruptcy court to sell a substantial portion of its assets.

After months of uncertainty, DFA emerged as the winning bidder for a substantial portion of Dean Foods.

Dean Foods and Dairy Farmers of America agreed to new bid procedures as one of the nation's largest largest food and beverage companies tries to emerge from Chapter 11 bankruptcy.

Dean Foods Co. has reached an agreement to sell much of its business operations to Dairy Farmers of America for $425 million, pending approval by a federal bankruptcy court and the Justice Department.

Borden Dairy became the second major dairy processor to file for bankruptcy in the last three months this week as the company announced it had “initiated voluntary reorganization proceedings.”

Though a grocery shopper may remain oblivious to the financial collapse of Dean Foods, a major milk processor and manufacturer, the industry is guessing how the firm's trip though Chapter 11 bankruptcy and expected sale to the Dairy Farmers of America will all shake out.

The largest dairy milk producer in the U.S. has begun Chapter 11 bankruptcy proceedings, citing “a challenging operating environment marked by continuing declines in consumer milk consumption.”

Dean Foods says it plans to leave the International Dairy Foods Association, saying one of the company’s key priorities – how to approach plant-based dairy alternatives using traditional nomenclature – is “no longer shared by the entire IDFA organization.”