J&J Snack Foods Corp., a leader and innovator in the snack food industry, announced it has entered into a definitive agreement to acquire Dippin’ Dots, L.L.C., a leading producer of flash-frozen beaded ice cream treats, for $222 million, subject to customary purchase price adjustments. The transaction will be funded through a caombination of cash and senior debt financing and is expected to be accretive to J&J’s annual operating results and is anticipated to close by the end of June, subject to customary closing conditions.

“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,” said Dan Fachner, J&J Snack Foods president and CEO  . 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.”

An ice cream industry pioneer, Dippin’ Dots uses an innovative and patented cryogenic freezing process to create unique “beaded” ice cream, yogurt, sherbet, and flavored ice products enjoyed by millions of consumers. The company sells its products through national accounts, local accounts, and a franchise network with over 140 franchisees. Dippin’ Dots is headquartered in Paducah, Kentucky, along with a main production facility, warehousing, distribution and administrative offices. The company also leases four additional frozen warehouses strategically located in California, Canada, Australia and China. 

“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,” Fachner said.

Ken Plunk, J&J Snack Foods Chief Financial Officer, said the acquisition “presents an opportunity to acquire a company that aligns with our focus on accelerating growth while delivering incremental shareholder value. Financially, we are leveraging our strong balance sheet and healthy liquidity position to acquire a profitable and scalable business that complements our long-term growth strategy. We expect this transaction to be accretive to our Earnings per Diluted Share in the range of $0.30 to $0.40 per share in the first 12 months after closing. This acquisition also provides significant tax benefits contributing to an even more attractive overall valuation.”

About J&J Snack Foods Corp.
 J&J Snack Foods Corp. is a leader and innovator in the snack food industry, providing innovative, niche and affordable branded snack foods and beverages to foodservice and retail supermarket outlets. Manufactured and distributed nationwide, our principal products include SuperPretzel, the No. 1 soft pretzel brand in the world, as well as internationally known ICEE and Slush Puppie frozen beverages, Luigi’s Real Italian Ice, Minute Maid frozen ices, Whole Fruit sorbet and frozen fruit bars, Sour Patch Kids Flavored Ice Pops, Tio Pepe’s & California Churros, and The Funnel Cake Factory funnel cakes and several bakery brands within Daddy Ray’s, Country Home Bakers and Hill & Valley. J&J Snack Foods Corp. has approximately twenty manufacturing facilities and generates more than $1 billion in annual revenue. The Company has a history of strong sales growth and financial performance and remains focused on opportunities to expand its unique niche market product offering while bringing smiles to families worldwide.