Two great innovators in the snack food industry are joining forces.
Pennsauken-based J&J Snack Foods Corp. on Thursday said it entered into a definitive agreement to acquire Dippin’ Dots, leading producer of flash-frozen beaded ice cream treats, for $222 million.
The company said the transaction will be funded through a combination of cash and senior debt financing and is expected to be accretive to its annual operating results.
The deal is expected to close by the end of June.
Dippin’ Dots, based in Paducah, Kentucky, sells its unique “beaded” ice cream, yogurt, sherbet and flavored ice products to millions of consumers through national accounts, local accounts and a franchise network with more than 140 franchisees.
“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,” Dan Fachner, J&J Snack Foods’ CEO and president, stated. “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.”
