CoolBrands to sell dairy ingredients division
is to sell its dairy ingredients division to a leading manufacturer
of specialty flavors for the ice cream industry, it emerged last
week.
The sale, due to close this month, will bring in $10m to CoolBrands, which the company said will go towards paying off a portion of its borrowings.
The division to swap hands - Value America flavors and ingredients division - currently manufactures and sells a line of flavors, coatings, fudge sauces, powders for chocolate milk, eggnog bases and other ingredients.
It has so far constituted a "significant part" of the Dairy Components segment of CoolBrands' operations, said the firm.
For the fiscal year ended August 31, 2005, the Dairy Components segment of CoolBrands contributed $19.5m in net revenues, and $2.6m in earnings from continuing operations before taxes. For the nine months ended May 31, 2006, it contributed $14.6m in revenues, and $1.8 in earnings.
CoolBrands manufactures, distributes and markets a broad range of frozen desserts and frozen novelties under a range of brand names. It also markets ice creams and frozen snacks under brands including Eskimo Pie, Godiva and Disney.
The firm formed Eskimo Pie Frozen Distribution, a wholly owned subsidiary, in 2003 with the aim of owning and operating the DSD frozen dessert distribution system that CoolBrands acquired from Nestlé.
