Dean Foods, a US-based producer of dairy and other food products, has announced that it has agreed to acquire the manufacturing and retail ice cream business Friendly’s Ice Cream for $155 million in cash.
Founded in 1935, Friendly’s Ice Cream produces packaged ice cream and other frozen dessert products, including single-serve sundae cups, novelty items, cakes and rolls, distributing them in over 8,000 retail outlets. The firm’s net sales in 2015 were $166 million.
Commenting on the acquisition, Dean Foods CEO Gregg Tanner said: “We are thrilled at the prospects the Friendly’s Ice Cream acquisition brings to Dean Foods,” said Gregg Tanner, CEO. “Coupled with the momentum of Dean Foods’ current regional brands, the Friendly’s brand will be a catalyst in our strategy to grow our existing ice cream business and branded portfolio. Friendly’s is an ideal complement to our other heritage brands across the country and fills a manufacturing and retail ice cream void in our nationwide footprint”.
“Friendly’s ice cream strongly resonates with consumers throughout the Northeast”, he added. “Very similar to the traditions shared by consumers who grew up enjoying our existing regional milk and ice cream brands, such as Mayfield or Dean’s, we believe the Friendly’s ice cream brand represents and promotes what Dean Foods has built itself around and is a great fit in our branded portfolio. Dean Foods is rooted in the traditional goodness of dairy, making Friendly’s more than just a good business and financial opportunity”.
The transaction is expected to close late in the second quarter of 2016, subject to regulatory approvals and other customary closing conditions.
Source: Dean Foods