CoolBrands International Inc. announced that it has entered into an agreement to acquire the yogurt business of Kraft Foods Inc. for approximately $59 million.
The acquired 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 approximately $90 million. Pursuant to the agreement, CoolBrands' wholly owned subsidiary, Integrated Brands Inc., will purchase substantially all of Kraft's assets related to its yogurt business, including 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-chief executive officer, David J. Stein. "CoolBrands has excelled in marketing great-tasting products in the frozen snacks category, and acquiring the yogurt business from Kraft will enable us to diversify our snack offerings in the high-growth yogurt category."
The transaction, which is subject to regulatory approval, is expected to be completed in the first quarter of 2005. Lehman Brothers served as financial advisor to Coolbrands.