Judge Approves Purchase Of Bankrupt Oberweis Dairy By Winnetka Private Equity Firm

WINNETKA, IL — The price paid by a Winnetka private equity company for a bankrupt dairy and its chain of ice cream shops was revealed Wednesday during a hearing in federal bankruptcy court.

Hoffmann Family of Companies, bidding through an investment arm called Osprey Capital, was the winning bidder for Oberweis Dairy and its assets during an auction last month.

At this week's hearing, a judge approved the deal, which is now expected to close June 17. If it does not, a backup bid could be accepted.

“We’re grateful to our employees and customers for standing by us during this difficult time,” said Hoffmann co-CEO Geoff Hoffmann, the son of the company's billionaire founder.

“With new financial backing, Oberweis Dairy is poised to continue its legacy as the most trusted name in dairy and beyond,” Hoffmann said in a statement following the sale's approval.

The winning bid and sale price of the company was $21.25 million, Crain's Chicago Business was first to report.

Hoffmann has no plans to close any of Oberweis's existing retail locations, nor to make substantial cuts to its business or change the brand name, company officials said.

In fact, they plan to announce the opening new locations in the Chicago area and other places where Hoffmann-owned companies operate.

Oberweis President Adam Klaber, who was promoted to the position earlier this year, said the dairy is now "primed for growth" as part of the Hoffmann Family of Companies.

“Our customers can look forward to exciting improvements throughout the summer and fall," Klaber said.

Representatives of the dairy's new ownership also announced plans to improve production capabilities at its manufacturing facilities and improve some of its locations, with "brighter stores" and greater selection of products.

Founded in 1927 and owned by four generations of the Oberweis family, Oberweis Dairy is known for selling its milk in glass bottles operates 40 retail ice cream and dairy stores, eight of which it owns and operates itself.

The company, which filed for Chapter 11 bankruptcy protection on April 12, employed over 1,100 workers and reported $93 million in revenue last year.

The acquisition includes Oberweis' North Aurora production facility, retail stores, home delivery services and franchising rights.

“The Oberweis acquisition aligns with our core investment philosophy: ‘Invest in good businesses, good properties, good people – all with the potential to be better,’” Hoffmann said. “We eagerly anticipate delivering smiles to customers and employees for years to come.”

Read more:

• Winnetka Private Equity Firm Wins Auction For Bankrupt Oberweis Dairy
• Bid For Oberweis Received After Bankruptcy Protection Filing
• Oberweis Dairy Files For Bankruptcy Protection