Dean Foods spinning off WhiteWave

DALLAS (AP) -- Dean Foods Co. said Wednesday that it will distribute a portion of its remaining stake in The WhiteWave Foods Co. later this month.

The dairy processing company took WhiteWave — which makes Silk soy products and Horizon Organic dairy products — public in October and is using proceeds to pay down debt.

Dean Foods owned most of WhiteWave's shares. It will distribute almost 47.7 million shares of WhiteWave's Class A stock and 67.9 million shares of its Class B stock on May 23 as a dividend on Dean Foods stock outstanding as of May 17.

When the distribution is complete, Dean will continue to own an interest in WhiteWave but will no longer have a controlling interest.

The company estimates that each of shareholders will get 0.256 share of WhiteWave Class A common stock and 0.364 share of WhiteWave Class B common stock in the distribution.

Dean Foods said that it expects to dispose of its retained shares of WhiteWave Class A common stock within 18 months of the distribution.

The company also said that Gregg Engles will resign as chairman and a director of Dean's board to focus on his role as Chairman and CEO of WhiteWave. Longtime board member Tom Davis will replace Engles as Dean Foods chairman. Three other board members have resigned as well as Dean Foods reduces its board from 12 to eight members.

Dean Foods shares fell 30 cents to close at $18.84 amid a broader market sell-off.