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Dean Foods (DF) Scoops Up Friendly's Ice Cream: Dig In
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I scream, you scream, we all scream for ice cream! Yes – now you can get your favorite Friendly’s Ice Cream at Dean Foods Company . Find out how.
Dean Foods, which currently occupies the third spot in terms of size among branded ice cream companies in the U.S., took a step toward fortifying its robust position in the ice cream segment. Evidently, this dairy products company concluded the buyout of Friendly’s Ice Cream – a retail and manufacturing ice cream business, from Friendly’s Restaurants.
Friendly’s Restaurants, an affiliate of Friendly’s Ice Cream, LLC, operates as a leading ice cream and dining name in the northeastern U.S., with more than 260 locations in the country. Dean Foods is sponsoring this $155 million deal, with cash and its current revolving facilities.
Dean Foods had first unveiled plans to acquire Friendly’s Ice Cream concurrent with its first-quarter 2016 results. As mentioned above, this acquisition is likely to enhance Dean Foods’ already strong ice cream business, which includes famous brands like Mayfield and Dean’s Country Fresh. In fact, the company’s ice cream net sales came in at roughly $1 billion in 2015, further highlighting its solid position.
Apart from buying Friendly's manufacturing and retail ice cream business, Dean Foods is also set to purchase the former’s trademark and intellectual property related to its ice cream operations. However, the leading Friendly’s Restaurants chain will still be owned by and operate under an affiliate of Sun Capital Partners, Inc.
The foundation of Friendly’s Ice Cream business dates back to 1935 that underscores its rich legacy and popularity among consumers. Notably, this Ice Cream unit recorded net sales of $166 million in 2015 and its addition to Dean Food’s portfolio is expected to augment the latter’s margins and bottom line immediately after the acquisition.
Evidently, the Zacks Rank #1 (Strong Buy) company expects this buyout to boost its earnings by roughly 6 cents per share in 2016.
Friendly’s Ice Cream is a renowned brand, which engages in the manufacture of famous packaged ice creams and additional frozen desserts like single-serve sundae cups, cakes, novelty items and rolls. The company, which uses premium quality ingredients and focuses on new flavors; exclusive formulations and packaging, distributes its products across more than 8,000 retail outlets.
This acquisition is most likely to extend Friendly’s popularity and enhance Dean Foods’ customer base. So, are you ready for some sinful indulgence?
Other favorably ranked stocks worth considering in the consumer staples sector include Post Holdings, Inc. (POST - Free Report) , B&G Foods Inc. (BGS - Free Report) and Omega Protein Corporation , each carrying the same Zacks Rank as Dean Foods.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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Dean Foods (DF) Scoops Up Friendly's Ice Cream: Dig In
I scream, you scream, we all scream for ice cream! Yes – now you can get your favorite Friendly’s Ice Cream at Dean Foods Company . Find out how.
Dean Foods, which currently occupies the third spot in terms of size among branded ice cream companies in the U.S., took a step toward fortifying its robust position in the ice cream segment. Evidently, this dairy products company concluded the buyout of Friendly’s Ice Cream – a retail and manufacturing ice cream business, from Friendly’s Restaurants.
Friendly’s Restaurants, an affiliate of Friendly’s Ice Cream, LLC, operates as a leading ice cream and dining name in the northeastern U.S., with more than 260 locations in the country. Dean Foods is sponsoring this $155 million deal, with cash and its current revolving facilities.
Dean Foods had first unveiled plans to acquire Friendly’s Ice Cream concurrent with its first-quarter 2016 results. As mentioned above, this acquisition is likely to enhance Dean Foods’ already strong ice cream business, which includes famous brands like Mayfield and Dean’s Country Fresh. In fact, the company’s ice cream net sales came in at roughly $1 billion in 2015, further highlighting its solid position.
Apart from buying Friendly's manufacturing and retail ice cream business, Dean Foods is also set to purchase the former’s trademark and intellectual property related to its ice cream operations. However, the leading Friendly’s Restaurants chain will still be owned by and operate under an affiliate of Sun Capital Partners, Inc.
The foundation of Friendly’s Ice Cream business dates back to 1935 that underscores its rich legacy and popularity among consumers. Notably, this Ice Cream unit recorded net sales of $166 million in 2015 and its addition to Dean Food’s portfolio is expected to augment the latter’s margins and bottom line immediately after the acquisition.
Evidently, the Zacks Rank #1 (Strong Buy) company expects this buyout to boost its earnings by roughly 6 cents per share in 2016.
Friendly’s Ice Cream is a renowned brand, which engages in the manufacture of famous packaged ice creams and additional frozen desserts like single-serve sundae cups, cakes, novelty items and rolls. The company, which uses premium quality ingredients and focuses on new flavors; exclusive formulations and packaging, distributes its products across more than 8,000 retail outlets.
This acquisition is most likely to extend Friendly’s popularity and enhance Dean Foods’ customer base. So, are you ready for some sinful indulgence?
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Other Stocks to Consider
Other favorably ranked stocks worth considering in the consumer staples sector include Post Holdings, Inc. (POST - Free Report) , B&G Foods Inc. (BGS - Free Report) and Omega Protein Corporation , each carrying the same Zacks Rank as Dean Foods.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>