Canadian frozen desserts maker CoolBrands International has said it will pay Swiss food giant Nestlé US$10m for some of its ice cream brands and assets.
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Share of CoolBrands, already up 124% in 2003, rose 52 Canadian cents (US$0.38), or 4.5%, to C$12.02 on the Toronto Stock Exchange on Thursday.
CoolBrands acquired the assets after Nestlé was required by US regulators to make divestitures in order to gain approval for its takeover of Dreyer’s Grand Ice Cream.
CoolBrands said it would acquire the Dreamery and Whole Fruit brands and the rights to the license for the Godiva ice cream brand, as well as related inventories. The company will also acquire Nestlé’s Haagen-Dazs frozen dessert distribution assets in several locations in the US.
“The company just doubled in size for a measly price,” Steve Gold, research analyst with Leeward Hedge Funds, was quoted by Reuters as saying.
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