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TORONTO -- CoolBrands International Inc. has entered into an agreement to acquire the yogurt business of Kraft Foods Inc. for approximately $59 million.
The purchased brands include Breyers Fruit on the Bottom, Light and Creme Savers cup yogurt varieties, and Creme Savers Smoothie drinkable yogurts. The estimated net revenue for these products in 2004 is around $90 million. In accordance with the agreement, Integrated Brands Inc., CoolBrands' wholly owned subsidiary, will purchase substantially all of Kraft's assets related to its yogurt business, among them a license for the Breyers trademark, a license for the Creme Savers trademark, a license for the Light 'n Lively trademark, and Kraft's manufacturing facility in North Lawrence, N.Y.
"Yogurt combines indulgent taste with good nutrition, and fits perfectly with our overall portfolio," said CoolBrands president and co-CEO David J. Stein in a statement. "Acquiring the yogurt business from Kraft will enable us to diversify our snack offerings in the high-growth yogurt category."
The transaction, subject to regulatory approval, is expected to be completed in the first quarter of 2005. Lehman Brothers acted as CoolBrands' financial adviser.
CoolBrands International markets a diverse range of frozen dessert products in the "better-for-you" ice cream, "better-for-kids" frozen snacks, superpremium ice cream, and "all family" premium ice cream and frozen snacks categories.