J&J Snack Foods Corp., Pennsauken, N.J., said it entered into a definitive agreement to acquire Dippin’ Dots LLC, a Paducah, Ky.-based 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 Snack Foods’ annual operating results. It is anticipated to close by the end of June 2022, subject to customary closing conditions.
“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,” saidDan Fachner, J&J Snack Foods’ president and CEO. “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, J&J Snack Foods said. The company sells its products through national accounts, local accounts and a franchise network with more than 140 franchisees.