SPRINGFIELD, Mo. — Hiland Dairy says it plans to purchase the Texas holdings of Borden, the Dallas-based dairy behemoth with revenue last year exceeding a billion dollars, in a larger plan to expand across the state.
"Our history and commitment to economic development in the communities we serve are strong," Gary Aggus, president of Hiland Dairy, said about the acquisition. "In that spirit, we are committed to growing Borden's production facilities in Texas and adding to Hiland's dairy-processing capabilities."
Borden's president, Pat Boyle, said the agreement between the two dairy producers will not affect the employment of over 1300 people working for its Texas operations.
"The assurance from Hiland Dairy to retain the employees and continue business as usual confirmed that this would be a good fit," Boyle said.
The Texas company has faced an uncertain future after filing for Chapter 11 bankruptcy protection in 2020, while its leaders said changing consumer habits and increasing debt were to blame for its recent business woes.
The USDA said in a report released June 21 that Americans have steadily been consuming less milk over the last 70 years, but that trend has rapidly increased in the last decade.
The report said alternatives, like plant-based products, "explain only a small portion" of why Americans are consuming less.
Hiland Dairy Foods Company, which is based in Springfield, Mo., employees over 2,800 people with dairy operations in Arkansas, Iowa, Kansas, Missouri, Nebraska, Oklahoma, Tennessee and Texas.
Borden has three plants in Texas, located in Austin, Dallas and Conroe.
The company produces over 350 million gallons of milk annually and serves 9,000 schools in the U.S., according to its website.
Hiland Dairy first expanded its product distribution to Texas back in 2012 and purchased three plants in Tyler back in 2017, the company said.
Both companies did not disclose if more Borden plants would be sold in the future.