Dean Foods Company has agreed to acquire the manufacturing and retail ice cream business “Friendly’s Ice Cream” from an affiliate of Friendly’s Ice Cream, LLC (“Friendly’s Restaurants”), a leading ice cream and dining brand in the Northeast U.S., for USD155m in cash.
“We are thrilled at the prospects the Friendly’s Ice Cream acquisition brings to Dean Foods,” said Gregg Tanner, Dean Foods 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, with USD166m in net sales in 2015, produces popular packaged ice cream and other frozen dessert products, including single-serve sundae cups, novelty items, cakes and rolls. Friendly’s distributes these products in over 8,000 retail outlets.
In addition to acquiring Friendly’s manufacturing and retail ice cream business, Dean Foods will acquire the Friendly’s trademark as well as all intellectual property associated with the ice cream business. Friendly’s Restaurants, a leading family-dining restaurant chain with over 260 locations in the U.S., will continue to be owned and operated by an affiliate of Sun Capital Partners, Inc. and will license use of the Friendly’s trademark under a license agreement entered into as part of the transaction.
The transaction is expected to close late in the second quarter of 2016, subject to regulatory approvals.
