CoolBrands to acquire distribution assets from Dreyer's, Nestle
Mar 5, 2003 12:00 PM, staff and wire reportsCoolBrands International Inc has announced that Integrated Brands Inc, its wholly owned subsidiary, has entered into an agreement with Dreyer’s Grand Ice Cream Inc and Nestle Ice Cream Co LLC (NICC), a subsidiary of Nestle Holdings Inc. This agreement is for the sale and purchase of certain ice cream and distribution assets, contingent upon the completion of the proposed transactions among Dreyer’s, NICC, and Nestle.
Under the asset purchase agreement signed March 4, Dreyer’s has agreed to sell to Cool-Brands the Dreamery and Whole Fruit Sorbet brands and, subject to the receipt of required third-party consents, the Godiva ice cream brand. NICC has agreed to sell its frozen dessert distribution assets in certain metropolitan areas in Washington state, Oregon, Florida, California, Pennsylvania, New Jersey, Maryland, and the District of Columbia. The parties also have agreed to enter into a number of ancillary agreements relating to such assets.
Dreyer’s and Nestle have entered into the transaction with CoolBrands to address concerns of the Federal Trade Commission (FTC) arising from the transaction between Dreyer’s and Nestle. The parties have commenced discussions with the FTC regarding terms of the proposed sale to CoolBrands and will continue to work with the to reach a mutually acceptable resolution in case the FTC has any continuing concerns that the proposed transaction does not address.