J&J Snack Foods has agreed to acquire Dippin’ Dots for $222 million. J&J expands its portfolio of products by adding the cryogenically frozen beaded ice cream maker, which also includes SUPERPRETZEL, ICEE, Minute Maid frozen ices, Sour Patch Kids ice pops, and more.
The transaction will be funded through a combination of cash and senior debt financing and is expected to be accretive to J&J’s annual operating results and is anticipated to close by the end of June 2022, subject to customary closing conditions.
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. The company sells its products through national accounts, local accounts, and a franchise network with over 140 franchisees. Dippin’ Dots is headquartered in Paducah, Ky., along with a main production facility, warehousing, distribution, and administrative offices. The Company also leases four additional frozen warehouses strategically located in California, Canada, Australia, and China.
Dan Fachner, J&J Snack Foods President and CEO, says, “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. 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.”