Coolbrands International said it has agreed to sell its yoghurt division, CoolBrands Dairy, to Lily Acquisition for US$45m in cash.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
CoolBrands would also receive a $5m subordinated promissory note, and a warrant to purchase 2m shares of common stock of Yogurt Holdings II, at a price of $1.25 per share.
CoolBrands Dairy manufactures cup yoghurt at its plant located in North Lawrence, New York under the Breyers and Creme Savers brands. The transaction is expected to close by early February 2007, and is subject to customary closing conditions.
The company said it has signed of a definitive agreement pursuant to which Lily Acquisition, an affiliate of Catterton Partners Management Company, has agreed to acquire all of the issued and outstanding shares of common stock of CoolBrands Dairy, an indirect wholly owned subsidiary of CoolBrands.
Catterton said it entered the agreement through portfolio company Healthy Food Holdings.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataHealthy Food Holdings CEO Chuck Marcy said, “Breyers’ commitment to high-quality has made it a brand leader in major segments of the yoghurt category. We are delighted to have the opportunity to build the Breyers brand by adding innovative new products and expanding retail distribution in all major channels.
“Together with our existing YoCrunch product line, Healthy Food Holdings will be able to offer customers differentiated yoghurt products that are fast becoming the go-to favourites for consumers seeking healthier snack alternatives that don’t compromise on taste.”
Healthy Food Holdings announced in December 2006 that it acquired Van’s International Foods, a maker and marketer of Van’s Waffles, a brand of all-natural and organic frozen waffles.
CoolBrands added it might use some portion of the proceeds of the sale to repay the remaining long-term debt of the company, but that the balance of the proceeds will be used for general working capital purposes.
CoolBrands has previously announced that it is exploring the possibility of the sale of certain of its ice cream assets such as the remaining distribution assets, CoolBrands’ foodservice division and CoolBrands’ ice cream brands, and the sale of CoolBrands’ owned real estate.
