J&J Snack Foods acquires Dippin’ Dots


PENNSAUKEN, NJ. —J&J Snack Foods Corp. entered into an agreement to acquire Dippin’ Dots, LLC for $222 million, subject to customary purchase price adjustments. The transaction is expected to close by the end of June.

Based in Paducah, Ky., Dippin’ Dots uses a cryogenic freezing process to produce bead ice cream, yogurt, sorbet and flavored frozen products distributed in thousands of franchises, theme parks, stadiums, arenas, zoos, cinemas and events. The company has a main production plant, warehouses, distribution offices and administrative offices in Paducah and leases four additional warehouses in California, Canada, Australia and China.

“Dippin’ Dots aligns perfectly with J&J’s portfolio strategy by adding an iconic and differentiated brand that uniquely complements our frozen novelties and frozen beverage businesses,” said Dan Fachner, President and CEO of J&J Snack Foods. “With this acquisition, we can further leverage our combined strength in entertainment and entertainment venues, theaters, convenience stores and supermarkets to realize additional scale, operational and go-to-market synergies and create new new sales opportunities among an expanded customer base. We believe this transaction further positions us for accelerated growth across all of our businesses.”

The transaction will be financed with a combination of cash and senior debt financing and is expected to be accretive to diluted earnings per share in the range of 30¢ to 40¢ per share in the first 12 months following closing, said Ken Plunk, chief financial officer of J&J Snack Foods.

“This acquisition also offers significant tax benefits contributing to an even more attractive overall valuation,” Plunk said.

Throughout its history, J&J Snack Foods has completed more than 30 acquisitions and has long-term experience integrating and scaling brands including Icee, SuperPretzel, Luigis and others, said Mr Fachner.

“As a member 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 operational efficiencies. “, did he declare.

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