Coolbrands in discussions to sell ice cream assets
January 18, 2007
by Eric Schroeder
TORONTO — Coolbrands International Inc. on Jan. 17 confirmed it has conducted discussions with potential buyers of certain ice cream assets, including the Eskimo Pie and Chipwich brands. Also potentially for sale are certain food service business assets.
The company disclosed it has conducted talks after the Toronto Globe and Mail said the company was in "advanced talks to sell many of its remaining assets — including the famous Eskimo Pie brand — to Dreyer’s Grand Ice Cream Inc., a unit of Nestlé SA, sources close to CoolBrands say."
Coolbrands did not confirm whether serious discussions with Nestle were under way.
In recent months, Coolbrands has divested or agreed to sell a number of businesses, including, most recently, its Breyer’s yogurt business. As measured by sales, the company’s frozen dessert business is its largest division, but the ice cream unit has sustained significant losses.