Ice cream company to buy ice cream maker for $1.4B
A new company that specializes in building ice cream is acquiring a California-based manufacturer that is producing refrigeration-brazing machines.
In a deal valued at $1,425 million, the company called Brazing Technology will purchase Ice Creams Bioscience for $2.8 billion, the New York Times reported.
Brazed will remain in California, where it has operations in the state.
Ice Cream Biosciences said in a statement it expects to continue operations as a separate company.
Ice cream maker Caffe Vespasias will remain part of the company.
Biossciences, based in Los Angeles, has more than 2,500 employees.
It produces specialty ice cream flavors and other ice cream products.
In February, Caffe agreed to buy a Chicago-based ice cream company for $450 million.
The company said it will continue to operate as a private company.
The new deal was announced Wednesday in Los, where Caffe has about 300 employees and plans to open its first ice cream factory.
“We will continue our business as a company, and we’ll continue to invest in research and development,” said CEO Steve Smith in a prepared statement.
“In addition, we’re investing heavily in the future of our products, as well as our products for consumers in the United States.”
The deal also includes $750 million in cash, the Times reported, citing people familiar with the matter.
In May, Caffy reported a net loss of $2 million on revenue of $732 million for the first quarter of this year.
It reported net income of $1 million on sales of $532 million.
Sales rose to $4.1 million in the fourth quarter of last year.
The deal is subject to approval by regulators, the paper said.