The Wall Street Journal Europe © Dow Jones

ENGLEWOOD CLIFFS, New Jersey — Thomas J. Lipton Co., a unit of Unilever PLC, said it signed a definitive agreement to buy two frozen dessert units for $155 million from Empire of Carolina Inc., Deerfield Beach, Florida.

Under the previously announced agreement, Lipton is buying Empire's wholly owned Isaly Klondike Co., based in Clearwater, Florida, and Popsicle Industries Ltd., based in Burlington, Ontario. Klondike makes and markets chocolate-coated novelty ice creams and other frozen dessert products and had 1991 sales of $76 million. Popsicle also makes and sells frozen novelty products and had 1991 sales of $25 million.

Lipton President and Chief Executive Blaine R. Hess called the Klondike brands "an ideal complement to our current Good Humor businesses."

After completion of the transaction, which is scheduled for today, Empire said its operating business will be the manufacture, marketing and distribution of plastic toys, seasonal decorative items and buttons through its Carolina Enterprises Inc. subsidiary.

Empire said it plans to use about $9.5 million of the proceeds of the sale to Lipton to retire outstanding long-term debt of Klondike and Popsicle. The company said it is evaluating various alternatives for the balance of the proceeds, including repayment of debt, repurchase of some stock outstanding and the exploration of other business opportunities, including potential acquisitions.

© 1993, Dow Jones & Co., Inc.