72 Year-Old Ice Cream Company Sold For $337 Million
On March 7 Friendly Ice Cream Corp., parent of Friendly’s, announced that it was considering putting the 72-year old company up for sale. Just 103 days later on June 17, Friendly’s has announced that a 337.2 million dollar deal is in place with Freeze Operations Holding Corp., a subsidiary of Florida based Sun Capital Partners. Sun Capital owns and operates six other restaurant companies: Bruegger’s, Fazoli’s, Garden Fresh, Real Mex, Restaurants Unlimited and Souper Salad.
The all-cash deal, has been unanimously endorsed by Friendly’s Board of Directors, requires support from 66% of the shareholders, is expected to close in the third quarter. Under the terms of the deal shareholders will receive $15.50 per share which represents an 8.2 percent premium over the closing price of Friendly’s common stock on Friday.
George Condos, Friendly’s president and CEO said “We believe this transaction delivers a very attractive value to our shareholders, and it does so more quickly and with greater certainty than other alternatives we examined.”
Gary Talarico, managing director for Sun Capital Partners, Inc. said, “Friendly’s is an iconic brand name in the family restaurant sector and we are excited to add this great franchise to our portfolio of restaurant investments. We look ofward to working with management to build on the legacy of this great brand and reinvigorate and expand the company within and beyond their historical markets.”
Prestley 'Pres' Blake the 92-Year old Co-Founder, who has been feuding with the company for more than 6-years now said that he was satisfied that the company would be in good hands. He said he trusts Sun Capital to build on the legacy he and his brother started nearly 73 years ago with a single ice cream shop.
Today the chain currently consists of 514 locations, more than 308 company owned locations and 206 franchised locations. The company also manufactures and distributes a line of packaged premium ice cream products through more than 4,500 supermarkets and other retail locations in 13 states.