Business
J&J SNACK FOODS TO ACQUIRE DIPPIN’ DOTS
Acquisition Adds Strong Consumer Brand with Profitable, Growing Business to J&J’s Portfolio and Expands Production and Distribution Capacity Transaction
About this update from J & J Snack Foods Corp.
[{"type":"text","content":"Acquisition Adds Strong Consumer Brand with Profitable, Growing Business to J&J’s Portfolio and Expands Production and Distribution Capacity\nTransaction Expected to be Accretive to J&J’s Annual Operating Results PENNSAUKEN, N.J., May 19, 2022 (GLOBE NEWSWIRE) -- J&J Snack Foods Corp. (NASDAQ: JJSF) (“J&J” or the “Company”), a leader and innovator in the snack food industry, announced today that it has entered into a definitive agreement to acquire Dippin’ Dots, L.L.C., a leading producer of flash-frozen beaded ice cream treats, for $222 million, subject to customary purchase price adjustments. The transaction will be funded through a combination of cash and senior debt financing and is expected to be accretive to J&J’s annual operating results and is anticipated to close by the end of June 2022, subject to customary closing conditions. Commenting on the transaction, Dan Fachner, J&J Snack Foods President and Chief Executive Officer stated, “Dippin’ Dots aligns perfectly with J&J’s portfolio strategy by adding an iconic, differentiated brand that uniquely complements our frozen novelty and frozen beverage businesses. 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. We are confident this transaction further positions us for accelerated growth across our business.” An ice cream industry pioneer, Dippin’ Dots uses an innovative and patented cryogenic freezing process to create unique “beaded” ice cream, yogurt, sherbet, and flavored ice products enjoyed by millions of consumers. The company sells its products through national accounts, local accounts, and a franchise network with over 140 franchisees. Dippin’ Dots is headquartered in Paducah, KY, along with a main production facility, warehousing, distribution, and administrative offices. The Company also leases four additional frozen warehouses strategically located in California, Canada, Australia, and China. Dan Fachner further added, “J&J Snack Foods has completed over 30 value-building transactions throughout the Company’s history, and we have a proven, long-term track record of successfully integrating and scaling niche brands including ICEE, Su...