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Melody Farms L.L.C. is in the due-diligence phase of acquiring Detroit-based Stroh's Ice Cream Co., a deal that would combine two of Detroit's largest ice cream-makers.
Melody Farms of Livonia, the dairy subsidiary of Farmington Hills-based Melody Foods Inc., reported $130 million in sales last year. Stroh's reported $20 million in 1997 revenue.
Dairy Farmers of America, the largest U.S. dairy cooperative, based in Kansas City, Mo., bought a minority interest in the Melody Farms unit in April. Since then, Melody Farms has been interested in expanding through acquisition, said Bill Fowler, CFO of Melody Foods. The sale of the minority interest freed cash for buyouts,...