Wilbraham, MA, and Dallas, TX—Friendly’s Ice Cream, LLC, on Monday announced the sale of its retail ice cream and manufacturing business to Dean Foods Company.

Dean Foods said it agreed to acquire the manufacturing and retail ice cream business of Friendly’s Ice Cream, which was started in 1935 in Springfield, MA, by brothers Curtis and Prestley Blake, for $155 million.

Friendly’s Ice Cream, with $166 million in net sales last year, produces popular packaged ice cream and other frozen dessert products, including single-serve sundae cups, novelty items, cakes and rolls. Friendly’s distributes these products in over 8,000 retail outlets, and the company said it has seen 105 percent growth in the retail business over the past five years.

Dean Foods Company will continue to produce Friendly’s ice cream out of the facility in Wilbraham, MA, that for over 45 years has produced Friendly’s packaged ice cream and frozen dessert products, along with ice cream for Friendly’s restaurants.

“Today marks a new chapter for Friendly’s retail and manufacturing ice cream business,” said John Maguire, Friendly’s president and CEO. “Dean Foods Company has recognized the growth momentum that Friendly’s retail ice cream has experienced over the last five years and I am thrilled that Dean Foods will be the ongoing steward of the retail ice cream business, led by the current experienced retail and creamery teams.”

“We are thrilled at the prospects the Friendly’s Ice Cream acquisition brings to Dean Foods,” said Gregg Tanner, CEO of Dean Foods. “Coupled with the momentum of Dean Foods’ current regional brands, the Friendly’s brand will be a catalyst in our strategy to grow our existing ice cream business and branded portfolio.

“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,” Tanner continued.

“Friendly’s ice cream strongly resonates with consumers throughout the Northeast,” Tanner added.

“Very similar to the traditions shared by consumers who grew up enjoying our existing regional milk and ice cream brands, such as Mayfield or Dean’s, we believe the Friendly’s ice cream brand represents and promotes what Dean Foods has built itself around and is a great fit in our branded portfolio. Dean Foods is rooted in the traditional goodness of dairy, making Friendly’s more than just a good business and financial opportunity.”

In addition to acquiring Friendly’s manufacturing and retail ice cream business, Dean will acquire the Friendly’s trademark as well as all intellectual property associated with the ice cream business.

Friendly’s restaurants, an ice cream-centric restaurant chain with over 260 locations in the US, will continue to be owned by an affiliate of Sun Capital Partners, Inc., and will license use of the Friendly’s trademark under a license agreement entered into as part of the transaction.