On the eve of the Iowa State Fair, Dairy Queen announced it will take a $1 billion buyout bid from its rival, The Bruery.
The dairy giant’s bid for the top spot in the Midwest’s largest grocery market is the largest since the 2008 merger of Trader Joe’s and Kroger.
It is also the largest purchase ever made by an American company, beating out the combined purchase of a large grocery chain by Wal-Mart.
The purchase also comes just days after Dairy Queen CEO and co-founder John Mackey said he was retiring.
Read more about Dairy Queen’s bid.
Dairy Queen Brounky in the MarketA deal involving dairy from the company’s dairy farm in Brouker, Iowa is expected to close by the end of March, according to a source familiar with the matter.
A Dairy Queen spokesperson said the company plans to enter into an agreement with the Bruery, the company in question.
It is unclear how the deal will affect the size of Dairy Queen, which had a market value of about $6 billion as of last year.
The deal could affect the grocery chain’s grocery sales.
A dairy-based grocer, such as Dairy Queen could have a significant impact on the price of dairy products, and the sale of the farm could affect prices in the dairy industry, according the source familiar.
Last month, the deal was made public, though Dairy Queen had not announced a specific number of stores it would close, or a timeline for closing them.
The price tag of the $1-billion deal is not known.DYNASTYS DOUGH BOTTOM LINEBrazier said it plans to increase production in Iowa to meet demand in the coming months, while The Brueries new grocery store will be a welcome addition to the Midwest.
The Bruery announced in February it would buy a 7 percent stake in the company, which has about 100 employees in the U.S. and 1,600 in the world.
It also has more than 40 stores in the United Kingdom, Australia, India and elsewhere.
Dryads dairy is grown on a dairy farm near Wyoast, Idaho, and its main product is made from grass.
It’s also sold in about 30 countries.