Bubbies Ice Cream Holding Final Sale Talks With Strategic Buyer  

The auction process for Bubbies Ice Cream is in the final stretch, according to two sources familiar with the situation, who said the company is holding exclusive sale talks with a larger food and beverage company.

Bubbies, which specializes in Japanese-style mochi ice cream, generates approximately $9 million in EBITDA, the sources said. They added that it is expected to be valued at about 11x EBITDA in the event of a sale, implying a potential enterprise valuation in the $100 million range.

Octus, formerly Reorg, first reported that Bubbies was exploring a sale with Lazard in December 2024. The company, which has been backed by Kenex Holdings since 2017, collected first-round bids from both sponsors and strategics in early November, as reported.

Tree Line Capital provided a first lien credit facility and equity co-investment to support Kenex’s buyout of Bubbies, which closed for undisclosed terms, according to a press release.

Food and beverage producers in Octus’ BDC Database include Hometown Food Co., which has a SOFR+460 bps term loan maturing in August 2029. As of May 13, AMG Comvest Senior Lending Fund and PGIM Private Credit Fund were listed as two of the company’s debtholders.

Bubbies, which started as an ice cream shop in Hawaii in 1985, sells more than 10 flavors of mochi in grocery stores nationwide, including in chains such as Whole Foods Market and Publix. The company is headquartered in Arizona.

Bubbies Ice Cream, Lazard, Kenex Holdings and Tree Line Capital did not return requests for comment.