CoolBrands to Buy Kraft's Yogurt Business
CoolBrands International, Ontario, is buying the Breyer's yogurt brand lines from Kraft Foods, Northfield, Ill. The deal includes the sale of the brands and of Kraft's manufacturing facility in North Lawrence, N.Y. The transaction is subject to regulatory approval and is expected to be completed in the first quarter. The ice cream maker and marketer said it will pay $59 million for the business.
CoolBrands, which has grown dramatically in recent years, due in part to an aggressive acquisition strategy, said last month that its first quarter revenues declined 3.3% to $100.5 million from $103.9 million for the same quarter a year earlier. This decline was due to the impact of lower margins.