CoolBrands International has said that its subsidiary, Eskimo Pie Corporation, has agreed the sale of its Value America flavours and ingredients division. The sale, to an unnamed party, was completed for the purchase price of US$10m.
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The unit manufactures and sells flavours, chocolate coatings, fudge sauces, powders for chocolate milk, eggnog bases and other ingredients. For fiscal 2005, the segment contributed revenues of $19.54m and pre-tax earnings of $2.59m to CoolBrands’ results.
The sale is expected to close this month. Net proceeds will be used to repay a portion of CoolBrands’ borrowings.
