CoolBrands sells assets to Dreyer’s
Jan 24, 2007 10:13 AM, from staff and wire reports
CoolBrands International Inc’s subsidiaries, Integrated Brands Inc and Eskimo Pie Corp, have sold their Eskimo Pie and Chipwich Brands and Real Fruit trademark, along with Eskimo Pie soft-serve product brands and related foodservice business, to Dreyer's Grand Ice Cream Inc.
The purchase price of approximately US $18,925,000 includes about US $4,000,000 for accounts receivables and inventory, subject to adjustments based on the final determination of accounts receivable and inventory at the time of closing.
Dreyers, an indirect subsidiary of Nestle SA, will assume related liabilities estimated to be about US $1,000,000. Sugar Creek Foods Inc, an indirect wholly owned subsidiary of CoolBrands, has also entered into a co-pack agreement with Dreyer's to manufacture soft-serve yogurt and ice cream for up to nine months.
Net proceeds from the sale were used to repay some US $5,000,000 in debt owed by CoolBrands to JP Morgan Chase, and the balance will be used for working capital purposes.
