Dreyer's acquires Eskimo Pie, Chipwich from CoolBrands
January 24, 2007
by Eric Schroeder
TORONTO — Less than a week after confirming it had held discussions with potential buyers of certain ice cream assets, CoolBrands International Inc. on Wednesday said it has sold its Eskimo Pie and Chipwich brands and Real Fruit trademark, along with Eskimo Pie soft-serve product brands and related food service business segment to Dreyer’s Grand Ice Cream, Inc., a unit of Nestle S.A.. CoolBrands said it sold the businesses for approximately $18,925,000, including approximately $4 million for accounts receivable and inventory at the time of closing.
Also as part of the transaction, Dreyer’s has agreed to assume the related liabilities in an amount that is estimated to be approximately $1 million.
Sugar Creek Foods, Inc., a subsidiary of CoolBrands, has entered a co-pack agreement with Dreyer’s under which it will manufacture soft-serve yogurt and ice cream for a period of up to 9 months.
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.