Dean Foods is hoping to expand its dairy portfolio with the acquisition of Friendly’s Ice Cream, effectively adding to a category that boosted its sales by 12 percent last year alone.
“Coupled with the momentum of our current regional brands, the Friendly’s franchise will be a catalyst for growth in our ice-cream business and our brand portfolio,” Dean’s Chief Executive Gregg Tanner told analysts while discussing the company’s first quarter, according to the Wall Street Journal.
The announcement came coupled with Dean Foods topping expectations for Q1 2016, bolstering the company's move in spite of some volatility in milk as of late.
WSJ reported that Dean is looking to purchase the company for $155 million in an all-cash deal, taking with it a portfolio that sells to upwards of 8,000 grocery stores across the New England area.
Dean Foods is one of the largest milk processors in the U.S. by volume, and generated about $972 million in sales from ice cream in 2015.
While the ink isn’t dry, WSJ reports that the company expects to close the deal by July of this year, which could effectively boost Dean Foods’ commodity milk business
With clear outlines for growth in play, keep checking in with DeliMarket News for the latest on Dean Foods and other expanding businesses in the industry.
