An ‘iconic, differentiated brand’
J&J President and CEO Dan Fachner described Dippin’ Dots as an ‘iconic’ and ‘differentiated’ brand. “Dippin’ Dots aligns perfectly with J&J’s portfolio strategy by adding an iconic, differentiated brand that uniquely complements our frozen novelty and frozen beverage businesses,” Fachner said.
The executive revealed that he anticipates Dippin’ Dots will benefit from sales synergies within the J&J business. “With this acquisition, we can further leverage our combined strength in entertainment and amusement locations, theaters, convenience, and supermarkets to realize added scale, operational and go-to-market synergies and create new selling opportunities among an expanded customer base. We are confident this transaction further positions us for accelerated growth across our business.”
Fachner further added that the move builds on J&J’s track-record of profitable M&A. “J&J Snack Foods has completed over 30 value-building transactions throughout the Company’s history, and we have a proven, long-term track record of successfully integrating and scaling niche brands including ICEE, SuperPretzel, Luigis and others. As a part 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 added operating efficiencies.”
Earnings positive M&A
The deal, for US$222m, will be funded through a combination of cash and debt. It is expected to be earnings accretive and should close by the end of June, the company revealed.