CoolBrands to sell dairy ingredients division

The sale, due to close this month, will bring in $10m to CoolBrands, which the company said will go towards paying off a portion of its borrowings. The division to swap hands - Value America flavors and ingredients division - currently manufactures and sells a line of flavors, coatings, fudge sauces, powders for chocolate milk, eggnog bases and other ingredients. It has so far constituted a "significant part" of the Dairy Components segment of CoolBrands' operations, said the firm. For the fiscal year ended August 31, 2005, the Dairy Components segment of CoolBrands contributed $19.5m in net revenues, and $2.6m in earnings from continuing operations before taxes. For the nine months ended May 31, 2006, it contributed $14.6m in revenues, and $1.8 in earnings. CoolBrands manufactures, distributes and markets a broad range of frozen desserts and frozen novelties under a range of brand names. It also markets ice creams and frozen snacks under brands including Eskimo Pie, Godiva and Disney. The firm formed Eskimo Pie Frozen Distribution, a wholly owned subsidiary, in 2003 with the aim of owning and operating the DSD frozen dessert distribution system that CoolBrands acquired from Nestlé.

CoolBrands to sell dairy ingredients division

Eskimo Pie Corporation, a subsidiary of CoolBrands International, is to sell its dairy ingredients division to a leading manufacturer of specialty flavors for the ice cream industry, it emerged last week.

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