Dippin’ Dots, LLC, a newly formed company based in Oklahoma City and funded by private capital, has received court approval to acquire Paducah, Ky.-based Dippin’ Dots, Inc. A motion to permit the proposed sale was approved today by the U.S. Bankruptcy Court in Louisville, Ky. The sale is expected to close by mid-May. The buyer is unaffiliated with Dippin’ Dots, Inc., the past owners of the ice cream novelty company.
“We’re extremely pleased to take the next step toward making the acquisition official,” Scott Fischer, president of the new Dippin’ Dots, LLC, said in a prepared statement. “The Dippin’ Dots brand resonates worldwide, and we look forward to growing this company for years to come. This transaction has gone extremely well, as all parties involved have exhibited a keen interest in the future of the company and its wonderful employees. We are prepared for an expedient and smooth transition to new ownership.”
Dippin’ Dots, Inc. is a well-known maker of flash-frozen ice cream. The company manufactures the product in Kentucky and sells to theme parks, concert and sports venues, and to a network of over 125 franchisees nationwide. Dippin’ Dots also sells internationally to customers and licensees in Canada, Europe, South Korea, Brazil, Japan and Australia. Dippin’ Dots employs approximately 165 workers at their facility in Paducah, Kentucky.
The founder of Dippin’ Dots, Curt Jones, is expected to resume his position as CEO under the new ownership team. “I’m excited about the future of Dippin’ Dots, and I’m eager to lead the company through the upcoming years of growth,” Jones said. Jones will oversee the company’s day-to-day operations and will hold a position on the company’s newly-formed board of directors.
In November 2011, Dippin’ Dots, Inc. filed for Chapter 11 bankruptcy protection in federal court in Kentucky. The definitive purchase agreement was approved by the bankruptcy court on May 2, and the final closing of the transaction is expected in the next couple of weeks.
Fischer also added that the company headquarters will remain in Paducah, Kentucky. “When we were exploring the possibility of purchasing Dippin’ Dots, we were consistently impressed by the quality and dedication of the Dippin’ Dots employees. Keeping the headquarters in Kentucky just made sense, and we’re proud to maintain what has historically been a mutually-beneficial relationship between Dippin’ Dots and the Paducah community. With that relationship intact, we are confident the future of the company stands on solid ground.”
