Vending

J&J Snack Foods to acquire Dippin’ Dots for $222M

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May 19, 2022

J&J Snack Foods Corp. has agreed to acquire Dippin' Dots LLC, a producer of flash-frozen beaded ice cream treats, for $222 million, subject to customary purchase price adjustments, according to a press release. The transaction will be funded through a combination 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 2022, subject to customary closing conditions.

Dippin' Dots introduced a branded vending machine in 1998, according to the company website.

"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," Dan Fachner, J&J Snack Foods president and CEO said in the press release.

Dippin' Dots, based in Paducah, Kentucky, uses a patented cryogenic freezing process to create "beaded" ice cream, yogurt, sherbet and flavored ice products which it sells through national accounts, local accounts and a franchise network with over 140 franchisees.