Dean Foods closes Friendly’s Ice Cream acquisition

Dean Foods Company has closed the acquisition of Friendly’s Ice Cream from leading US-based ice cream and dining brand Friendly’s Restaurants for $155m.

Announced last month, the purchase was made completely in cash.

Dean Foods has funded the deal with cash on hand and existing revolving facilities.

Founded in 1935, Friendly’s Ice Cream produces packaged ice cream and other frozen dessert products, including single-serve sundae cups, novelty items, cakes and rolls.

It distributes these products in more than 8,000 retail stores, and reported net sales of $166m last year.

Dean Foods owns brands such as Mayfield and Dean’s Country Fresh.

It reported net sales of nearly $1bn in the ice cream sector.

Dean Foods CEO Gregg Tanner said: "The addition of Friendly’s to the Dean Foods family boosts our already-strong position in the ice cream category.

"Dean Foods is the US’ 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."

Besides acquiring Friendly’s manufacturing and retail ice cream business, Dean Foods purchased the Friendly’s trademark and intellectual property associated with the ice cream unit.

Friendly’s Restaurants has more than 260 restaurants in the US. It will continue to be owned and operated by an affiliate of Sun Capital Partners.

It will license use of the Friendly’s trademark under license and supply agreements as part of the deal.