J&J Snack Foods will acquire Dippin’ Dots for $222 million in a bid to increase its scale.
Dan Fachner, CEO and president of J&J Snack Foods, noted that the ice cream company aligns with its own portfolio of frozen novelty and frozen beverage businesses, which includes such brands as Icee, Slush Puppie, and Luigi’s Real Italian Ice.
“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,” he added.
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Headquartered in Paducah, KY, Dippin’ Dots sells through retail, theme parks, stadium and more, as well as through a franchise network with more than 140 franchisees. The sale will include its main production facility, warehousing, distribution, and administrative offices. The company also leases four additional frozen warehouses in California, Canada, Australia, and China.
J&J, which operates around 20 manufacturing facilities of its own and generates more than $1 billion in annual revenue, will also lend its marketing and product innovation capabilities to expand Dippin’ Dots distribution into new markets, as well as implement operating efficiencies.
The deal is expected to close by the end of June.