J+J Snack Foods: to acquire Dippin’ Dots LLC

Pennsauken / NJ. (jj) J+J Snack Foods Corporation, a leader and innovator in the snack food industry, announced that it has entered into a definitive agreement to acquire Dippin’ Dots, L.L.C., a leading producer of flash-frozen beaded ice cream treats, for USD 222 million, subject to customary purchase price adjustments. 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.

Commenting on the transaction, Dan Fachner, J+J Snack Foods President and Chief Executive Officer stated, «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.»

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 further added, «J+J Snack Foods has completed over 30 value-building transactions throughout the Company’s history, and we have a proven, long-term track record of successfully integrating and scaling niche brands including ICEE, SuperPretzel, Luigis and others. As a part of J+J, we will have the opportunity to leverage our marketing and innovation capabilities to promote Dippin’ Dots and expand distribution into new markets while implementing initiatives to gain added operating efficiencies.»

Ken Plunk, J+J Snack Foods Chief Financial Officer added «Dippin’ Dots presents an opportunity to acquire a company that aligns with our focus on accelerating growth while delivering incremental shareholder value. Financially, we are leveraging our strong balance sheet and healthy liquidity position to acquire a profitable and scalable business that complements our long-term growth strategy. We expect this transaction to be accretive to our Earnings per Diluted Share in the range of USD 0.30 to USD 0.40 per share in the first 12 months after closing. This acquisition also provides significant tax benefits contributing to an even more attractive overall valuation.»

Scott Fischer, CEO of Dippin’ Dots, added, «The Dippin’ Dots team is thrilled to be joining the J+J Snack Foods family. As a leader in the snack industry with a number of iconic brands and a strong record of product innovation, we believe J+J Snacks Foods is well-positioned to leverage our unique offering in the market and improve and grow the business going forward.»

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