Suiza and Broughton Foods Settle Lawsuit with DOJ

Suiza Foods Corp. (Dallas, TX) and Broughton Foods Co. (Marietta, OH) have reached an agreement with the U.S. Department of Justice Antitrust Division (DOJ) to settle a lawsuit brought by DOJ against Suiza and Broughton in March 1999. The proposed settlement would allow Suiza to complete its proposed merger with Broughton under the condition that Suiza would later sell Broughton's Southern Belle Dairy in Pulaski County, KY.

The settlement is subject to approval by the U.S. District Judge for the Eastern District of Kentucky London where the DOJ's antitrust lawsuit is currently pending. Before the court approves the settlement, it must be submitted for public comment for a period of 60 days, but the parties may close the merger prior to final approval of the settlement. Pursuant to the proposed settlement, Suiza will agree to sell the Southern Belle dairy to a buyer acceptable to the DOJ within six months after the settlement agreement is filed with the court.