Dean Foods Company has announced that it has completed the acquisition of Friendly's ice cream manufacturing and retail distribution business for $155m in cash.
Dean Foods is a Texas-based food and beverage firm and a processor and direct-to-store distributor of fresh fluid milk and other dairy and dairy case products in the US.
In 2015, Friendly's Ice Cream posted net sales of $166m. Its makes packaged ice cream and other frozen dessert products, including single-serve sundae cups, novelty items, cakes and rolls and distributes them in more than 8,000 retail outlets.
Friendly's ice cream business is operated by the company affiliate FIC Restaurants, which runs and franchises over 260 restaurants.
Friendly's said that FIC Restaurants will continue its operations as a restaurant organization, with its existing senior team leading the business.
FIC Restaurants CEO John Maguire said: "This agreement is the result of 105% growth of our retail business over the past five years, as well as the successful repositioning of our restaurant business.
"Dean Foods possesses the growth capabilities and expertise to take the Friendly's retail ice cream business to the next level of its meteoric rise."
Under the ownership of Dean Foods, Friendly's Ice Cream business will continue to operate out of the facility in Wilbraham, led by its current experienced retail and creamery teams.
The acquisition is expected to strengthen Dean Foods' position in the US ice cream market. Dean Foods' ice cream net sales totaled nearly $1bn in 2015.
Dean Foods CEO Gregg Tanner said: ""The addition of Friendly's to the Dean Foods family boosts our already-strong position in the ice cream category.
"Dean Foods is the United States' third largest branded ice cream company. Friendly's is an ideal complement to our other heritage brands across the country and fills a manufacturing and retail ice cream void in our nationwide footprint."