Acquisition lines up cool billions in ice cream sector
A Bedfordshire firm that holds the European licence to an innovative soft-serve ice cream system targeting a £10 billion market has been acquired just a year on from its incorporation by its US counterpart.
California based Avasoft has paid £600k for Ezee Whip Europe in stock and cash and intends to use its access to public capital markets to substantially increase the firm’s sales and marketing activities first in the UK and then on the European mainland.
Ezee Whip holds a perpetual European licence for a unique soft-serve cartridge dispensing system, which Avasoft markets in the £2.2bn US market.
It is a private company with total sales of around £500k to more than 1,500 retail accounts. Avasoft believes Ezee Whip’s distribution and outsourcing business model is highly scalable and closely aligned with its own, offering considerable mutual synergies and strong operating leverage.
Ezee Whip has enjoyed widespread success throughout the UK and parts of Europe. Its sole competitor is Unilever, which markets its system under the Cornetto Soft brand, which Ezee Whip believes it out-performs by offering a higher profit margin for retailers and distributors and a lower start-up equipment cost.