CoolBrands sells DSD system to Southwest Traders.

CoolBrands International has announced that its subsidiary, Eskimo Pie Frozen Distribution will sell its "direct store door" (DSD) frozen distribution assets in Florida, California, Oregon and Washington to Southwest Traders, Inc. for net consideration of approximately $5 million. The sale was expected to close on November 17. Net proceeds from the sale will be used to repay a portion of CoolBrands' borrowings.

Headquartered in Temecula, CA, Southwest Traders has over $70 million in revenues, with more than 30 refrigerated trucks in operation and over 140 employees. In business since 1977, the company provides customer product distribution to thousands of independent operators as well as regional and national food chain accounts.

Southwest's specializes in quick serve restaurants with a focus on the ice cream, juice & smoothie bars, yogurt, and coffee categories. Its customer base has grown to include Costco, Baskin Robbins, Starbuck's, and Jamba Juice. The company's direct distribution system operates out of seven facilities throughout the southwest region, currently serving 14 western states with its state-of-the-art distribution system.

In addition to the facility at its Temecula headquarters, the company has distribution sites in Sacramento, Denver, Dallas, and Houston. Southwest maintains four different temperature zones. The company also reports that its deliveries are tracked by a global positioning system (GPS) with real-time communication.

CoolBrands' decision to sell the DSD business follows a company announcement in October that it was seeking the divestiture of some of its business units and other assets to raise revenues to counteract a combination of operational losses and defaults on its credit facilities. The company is also reducing operating costs through efforts that include personnel reductions and salary deferrals by certain members of senior management.