Apr 14, 2009 5:21 PM

Stater Bros Holdings has announced that the company’s wholly owned subsidiary, Stater Bros Markets, has agreed in principle to sell Santee Dairies to Dean Foods, America’s largest dairy.

“The future growth of Santee Dairies’ products was limited because most potential customers are competing supermarket chains that already operate their own dairies and have been advised by their parent corporations not to purchase products, other than Knudsen fluid milk and Arnold Palmer Tee, from Santee Dairies, which they feel would help with the expansion of Stater Bros Markets,” said Jack H Brown, chairman, president and CEO of Stater Bros Holdings.

The sale will help insure the continued growth of Santee, he added, and said Stater Bros Markets will continue to purchase Santee’s dairy products.

The transaction is expected to be completed within the next few months.