CoolBrands agrees to sell yogurt division
Jan 3, 2007 10:11 AM, from staff and wire reports
CoolBrands International Inc has signed a definitive agreement through which Lily Acquisition LLC, an affiliate of Catterton Partners Management Co, has agreed to acquire all shares of common stock of CoolBrands Dairy Inc.
An indirect wholly owned subsidiary of CoolBrands, CoolBrands Dairy produces cup yogurt at its North Lawrence NY plant under the Breyers and Creme Savers brands. The transaction is expected to close by early February 2007, and is subject to customary closing conditions. As part of the sale, CoolBrands will receive US $45 million in cash (subject to an inventory and slotting fee adjustment), a US $5 million subordinated promissory note, and a warrant to purchase two million shares of common stock of Yogurt Holdings II Inc for US $1.25 per share.
CoolBrands may use some portion of the proceeds of the sale to repay its long-term debt. The balance of the proceeds will be used for general working capital purposes.
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