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ESKIMO PIE CORPORATION ANNOUNCES INTENT TO ACQUIRE FROZEN DAIRY DESSERT MANUFACTURER

 RICHMOND, Va., Oct. 27 /PRNewswire/ -- Eskimo Pie Corporation (NASDAQ-NMS: EPIE) today announced that it has entered into a non- binding letter of intent to acquire a privately-held manufacturer of frozen dairy dessert products for an undisclosed amount. The company to be acquired is expected to have 1993 sales and operating income of approximately $10 million and $2.3 million, respectively. Eskimo Pie indicated that consummation of the transaction is subject to negotiation of a definitive agreement and the satisfaction of certain other conditions, including completion of due diligence to Eskimo's satisfaction. If the transaction is consummated, the parties anticipate the closing would occur by year end.
 David V. Clark, president and CEO, stated: "This proposed acquisition would give Eskimo Pie a niche not currently served by our licensees. The acquisition would dove-tail nicely with our existing manufacturing operations and supplement the distribution we have developed with our licensees. We are excited about the opportunity represented by this potential acquisition, which is indicative of our commitment to growing Eskimo Pie's presence in the frozen dessert category."
 John T. Herzog, chief financial officer of Eskimo Pie, added: "The purchase price will be payable primarily in cash and the transaction is expected to be non-dilutive to earnings. On a pro forma basis, we anticipate that the acquisition would enhance our operating margins and earnings per share, while maintaining our conservative balance sheet."
 Eskimo Pie Corporation, headquartered in Richmond, created the frozen novelty industry in 1921 with the invention of the ESKIMO PIE ice cream bar. The company markets a broad range of frozen novelties throughout the United States under the ESKIMO PIE, SUGAR FREEDOM ESKIMO PIE, Welch's, Tootsie Pops and 7-UP brand names through a national network of licensed manufacturers.
 -0- 10/27/93
 /CONTACT: J.L. Cheatham of Eskimo Pie, 804-560-8446/
 (EPIE)


CO: Eskimo Pie Corporation ST: Virginia IN: FOD SU: TNM

KD-DS -- DC008 -- 7195 10/27/93 10:47 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
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