DALLAS, June 20, 2016 /PRNewswire/ -- Dean Foods
Company ("Dean Foods") (NYSE: DF) announced today that it has
completed the previously disclosed acquisition of the manufacturing
and retail ice cream business ("Friendly's Ice Cream") from an
affiliate of Friendly's Ice Cream, LLC ("Friendly's Restaurants"),
a leading ice cream and dining brand in the Northeast U.S., for
$155 million in cash.
Friendly's Ice Cream, with $166
million in net sales in 2015, is an iconic brand that
produces popular packaged ice cream and other frozen dessert
products, including single-serve sundae cups, novelty items, cakes
and rolls. Friendly's distributes these products in over 8,000
retail outlets. Products are made from high-quality ingredients
with an emphasis on innovative flavors, unique formulations and
packaging. Founded in 1935, the brand has a rich heritage and a
long history of delighting consumers.
Dean Foods' acquisition of Friendly's Ice Cream reinforces the
company as a clear U.S. leader in ice cream, with recognizable
brands such as Mayfield® and Dean's Country Fresh®. The company's
2015 ice cream net sales totaled nearly $1
billion.
"The addition of Friendly's to the Dean Foods family boosts our
already-strong position in the ice cream category," said
Gregg Tanner, CEO. "Dean Foods is the
United States' third largest branded ice cream company.
Friendly's is an ideal complement to our other heritage brands
across the country and fills a manufacturing and retail ice cream
void in our nationwide footprint."
The acquisition of the Friendly's Ice Cream manufacturing and
retail business is expected to be immediately accretive to margins
and earnings, and Dean Foods expects that the acquisition will add
approximately $0.06 earnings per
share accretion in 2016. Dean Foods is funding the transaction with
cash on hand and our existing revolving facilities.
In addition to acquiring Friendly's manufacturing and retail ice
cream business, Dean Foods is acquiring the Friendly's trademark as
well as all intellectual property associated with the ice cream
business. Friendly's Restaurants, a leading family-dining
restaurant chain with over 260 locations in the U.S., will continue
to be owned and operated by an affiliate of Sun Capital Partners,
Inc. and will license use of the Friendly's trademark under license
and supply agreements entered into as part of the transaction.
Rothschild Inc. acted as financial advisor to Dean Foods on the
transaction, and Gibson Dunn provided legal support. Lazard Middle Market served as financial advisor
to Friendly's Ice Cream on the transaction, and Morgan, Lewis &
Bockius was the company's legal advisor.
About Dean Foods
Dean Foods® is a leading food and beverage company and the
largest processor and direct-to-store distributor of fresh fluid
milk and other dairy and dairy case products in the United States. Headquartered in
Dallas, Texas, the Dean Foods
portfolio includes DairyPure®, the country's first and largest
fresh, white milk national brand, and TruMoo®, the leading national
flavored milk brand, along with well-known regional dairy brands
such as Alta Dena®, Berkeley Farms®, Country Fresh®, Dean's®,
Garelick Farms®, LAND O LAKES®* milk and cultured products*, Lehigh
Valley Dairy Farms®, Mayfield®, McArthur®, Meadow Gold®, Oak
Farms®, PET®**, T.G. Lee®, Tuscan® and more. In all, Dean Foods has
more than 50 national, regional and local dairy brands as well as
private labels. Dean Foods also makes and distributes ice cream,
cultured products, juices, teas, and bottled water. Almost 17,000
employees across the country work every day to make Dean Foods the
most admired and trusted provider of wholesome, great-tasting dairy
products at every occasion. For more information about Dean Foods
and its brands, visit www.deanfoods.com.
*The LAND O LAKES brand is owned by Land O'Lakes, Inc. and is
used by license.
**PET is a trademark of The J.M. Smucker Company and is used by
license.
Some of the statements made in this press release are
"forward-looking" and are made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995,
including but not limited to statements relating to the expected
completion date for the acquisition of the Friendly's Ice Cream
business, and other statements that begin with words such as
"expect," "believe," "should" or "anticipate."
The statements above involve risks and uncertainties that may
cause results to differ materially from those set forth in this
press release. The Friendly's Ice Cream business may not achieve
the level of sales or profitability that justifies our investment,
or may have unidentified liabilities for which it may remain
responsible following the acquisition by Dean Foods. The success of
the Friendly's acquisition may depend on our ability to effectively
integrate its products into our existing operations, achieve
anticipated cost savings, or retain key customers, suppliers, and
employees of Friendly's Ice Cream business. Financial projections
are based on a number of assumptions, and actual results could be
materially different than projected if those assumptions are
incorrect. Dean Foods' ability to meet targeted financial and
operating results depends on a variety of economic, competitive,
and governmental factors, including raw material availability and
costs, the demand for Dean Foods products, and Dean Food's ability
to access capital under its credit facilities or otherwise, many of
which are beyond Dean Food's control and which are described in
Dean Food's 2015 Annual Report on Form 10-K, as filed with the
Securities and Exchange Commission on March
30, 2016.
All forward-looking statements in this press release speak
only as of the date of this press release. Dean Foods expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any such statements to reflect any change
in our expectations with regard thereto or any changes in the
events, conditions or circumstances on which any such statement is
based except as required by law.
CONTACT: Corporate Communications, Jamaison Schuler, +1-214-721-7766; or Investor
Relations, Sherri Baker,
+1-214-303-3438
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SOURCE Dean Foods Company