J&J Snack Meals has entered an settlement to procure US-based Dippin’ Dots, a producer of deep-frozen ice lotions.
Nasdaq-listed J&J Snack Meals, which produces ice cream, lollies and sorbets, along side dry snacks and bakery merchandise, mentioned the acquisition worth has been set at US$222m, with the deal anticipated to near through the tip of June.
Dippin’ Dots, founded in Paducah, Kentucky, produces beaded ice lotions the use of cryogenic era, an overly low-temperature freezing procedure. The corporate was once got in 2012 through funding company Fischer Enterprises led through Scott Fischer, who’s Dippin’ Dots CEO.
Based in 1988, Dippin’ Dots provides leisure venues reminiscent of sports activities stadiums, theme parks and theatres, in addition to thru franchises and direct-to-consumer throughout the United States. It additionally serves seven world markets, together with Canada, China, Japan and Australia.
Dan Fachner, the president and CEO of J&J Snacks, which serves the retail and foodservice channels with merchandise that still come with pretzels, truffles and cookies, mentioned the deal “aligns completely with J&J’s portfolio technique”.
He added: “With this acquisition, we will be able to additional leverage our mixed power in leisure and amusement places, theatres, comfort, and supermarkets to understand added scale, operational and go-to-market synergies and create new promoting alternatives amongst an expanded buyer base. We’re assured this transaction additional positions us for speeded up expansion throughout our trade.”
Dippin’ Dots Fischer mentioned: “As a pace-setter within the snack business with a variety of iconic manufacturers and a powerful file of product innovation, we consider J&J Snacks Meals is well-positioned to leverage our distinctive providing out there and give a boost to and develop the trade going ahead.”
Previous this month, J&J Snack Meals booked “file” second-quarter web gross sales of $281.5m, up 9.9% year-on-year. The end result intended its first-half web gross sales, masking the duration to 26 March, had been $600m, greater than 20% upper than a 12 months previous.
J&J Snack Meals’ first-half running source of revenue stood at $18.9m, towards $7.8m within the corresponding duration of the former fiscal 12 months. All the way through the second one quarter, its running source of revenue fell from $7.2m a 12 months in the past to $4.1m, hit through value inflation and the expense of putting in a brand new ERP machine.
Internet income additionally reflected the trend noticed within the corporate’s running source of revenue, up year-on-year within the first 1/2 however decrease in the second one quarter. First-half web income had been $14.4m, as opposed to $7.8m a 12 months previous. 2nd-quarter web income stood at $3.3m, in comparison to $6.1m the 12 months sooner than.
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