PENNSAUKEN, N.J. — J&J Snack Foods Corp. has signed a definitive agreement to acquire Dippin’ Dots LLC for $222 million.
Dippin' Dots has produced and distributed its flash frozen tiny beads of ice cream, yogurt, sherbet and flavored ice products since microbiologist Curt Jones invented the cryogenic process in 1988. Dippin' Dots distributes its frozen products in all 50 states and 11 countries.
J&J Snack Foods, Pennsauken, N.J., will fund the purchase through a combination of cash and senior debt financing.
“With this acquisition, we can further leverage our combined strength in entertainment and amusement locations, theaters, convenience and supermarkets to realize added scale, operational and go-to-market synergies and create new selling opportunities among an expanded customer base,” said Dan Fachner, J&J Snack Foods president and CEO.
Dippin’ Dots sells its products through national accounts, local accounts and a franchise network with more than 140 franchisees. It has a main production facility and warehousing, distribution and administrative offices in Paducah, Ky., as well as four frozen warehouses in California, Canada, Australia and China.
“We expect this transaction to be accretive to our earnings per diluted share in the range of 30 cents to 40 cents per share in the first 12 months after closing,” said Ken Plunk, J&J Snack Foods chief financial officer. “This acquisition also provides significant tax benefits contributing to an even more attractive overall valuation.”
The companies anticipate that the transaction will close by the end of June.
J&J Snack Foods provides branded snacks and beverages to the foodservice and retail channels. Manufactured and distributed nationwide, the company’s products include Superpretzel, Icee, Minute Maid frozen ices, Sour Patch Kids Flavored Ice Pops, the Funnel Cake Factory and more.
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