Exhibit 99.1
News release via Canada NewsWire, Toronto 416-863-9350
Attention Business Editors:
CoolBrands sells Eskimo Pie and Chipwich brands and Real Fruit
trademark, along with Eskimo Pie foodservice business to Dreyer's Grand
Ice Cream
TORONTO, Jan. 24 /CNW/ - CoolBrands International Inc. ("CoolBrands")
(TSX: COB.A) announced that its subsidiaries, Integrated Brands Inc. and
Eskimo Pie Corporation have sold their Eskimo Pie and Chipwich Brands and Real
Fruit trademark, along with Eskimo Pie soft serve product brands and related
foodservice business segment to Dreyer's Grand Ice Cream, Inc., an indirect
subsidiary of Nestle S.A., for a purchase price of approximately
US $18,925,000, which includes approximately US$4,000,000 for accounts
receivables and inventory associated with this transaction, subject to
adjustments based on the final determination of the accounts receivable and
inventory at the time of closing. Dreyers will also assume the related
liabilities in an amount that is estimated to be approximately US$1,000,000.
Sugar Creek Foods, Inc., an indirect wholly owned subsidiary of CoolBrands,
has also entered into a Co-Pack Agreement with Dreyer's to manufacture
soft-serve yogurt and ice cream for a period of up to 9 months.
Net proceeds from the sale were used to repay the balance of debt owed by
CoolBrands to JP Morgan Chase of approximately US$5,000,000, and the balance
will be used for working capital purposes. For the fiscal year ended
August 31, 2006, the revenues recognized by CoolBrands in respect of the
assets sold to Dreyer's were US$35,412,000 (unaudited).
About CoolBrands International: CoolBrands International Inc. is focused
on marketing and selling a broad range of ice creams, frozen snacks and fresh
yogurt products under nationally and internationally recognized brand names.
For more information about CoolBrands, visit www.coolbrandsinc.com.
Forward Looking Statements
This press release includes certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 regarding,
among other things, statements relating to goals, plans and projections
regarding the Company's financial position and business strategy. These
statements may be identified by the fact that they use such words as
"anticipate," "estimate," "expect," "intend," "plan," "believe," and other
words and terms of similar meaning in connection with any discussion of future
operating or financial performance. Such forward-looking statements are based
on current expectations and involve inherent risks and uncertainties,
including factors that could delay, divert or change any of them, and could
cause actual outcomes and results to differ materially from current
expectations. These factors include, among other things, market factors,
competitive product development and promotional activity, the level of
consumer interest in the Company's products, product costing, the weather, the
performance of management, including management's ability to implement its
plans as contemplated, the Company's relationship with its customers,
franchisees, licensees and licensors, governmental regulations and legislation
and litigation. The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information, future
events or otherwise.
%SEDAR: 00003887E %CIK: 0001279569
/For further information: Carla Aedo, Telephone: (905) 479-8762/
(COB.A.)
CO: CoolBrands International Inc.
CNW 09:00e 24-JAN-07