December 11 2019
FRONERI MOVES TOWARDS GLOBAL LEADERSHIP WITH ACQUISITION OF NESTLÉ USA’S ICE CREAM BUSINESS
Froneri has today announced plans to expand into North America by acquiring the Nestlé USA ice cream business for US$4Bn. The acquisition includes iconic and well-loved ice cream brands including Dreyer’s, Häagen-Daaz, Outshine, Skinny Cow, Edy’s, Nestlé Ice Cream and Drumstick.
Commenting on the acquisition, Ibrahim Najafi, Froneri CEO explains:
“This is another milestone acquisition for Froneri as we drive towards becoming the world’s best ice cream company. We’re delighted to be bringing such well-loved US brands into the Froneri family.”
The acquisition of Nestlé USA’s ice cream business, the 2nd largest ice cream manufacturer in the USA, propels Froneri to become the 2nd largest manufacturer globally and marks its first entry into the US ice cream market, the largest market in the world with a value of more than $10bn per annum.
The acquisition brings with it a high-calibre management team and extensive in-market knowledge, as well as marketing, manufacturing, sales and distribution capabilities. It employs more than 2,300 people across the USA with 2018 sales of $1.8 billion.
The acquisition significantly expands Froneri’s global presence and builds on its highly successful partnership with Nestlé and PAI Partners formed in 2016. The transaction also follows the acquisition of Tip Top Ice Cream in New Zealand in May, and Noga Ice Creams in Israel in July, which gave the Company entry to those markets for the first time.
The acquisition is anticipated to complete in Q1 2020 contingent on completion of customary regulatory approvals.
Ibrahim Najafi, Froneri CEO continues:
“Nestlé USA’s ice cream business is a well-invested and growing business, which has successfully capitalised on the global consolidation of retailers and is set for further growth. There is great opportunity for us to now build on this, benefitting the business globally and providing opportunity and development potential for our people. We will continue to invest, innovate and develop the business further.
“The acquisition is testament to the strength and longevity of our relationship with Nestlé. Our partnership with them and the continued support of PAI Partners will be essential to ensuring we succeed. We continue to build on our partnership through great brands, geographic expansion and innovation.”
Froneri is a fast-growth international business with a vision to build the world’s best ice cream company. A passionate challenger brand, we are building the market through a focus on ice cream, delivering value for retailers and consumers. Created in 2016 as a joint venture between PAI Partners and Nestlé, we are the second largest manufacturer of ice cream in Europe, the third largest worldwide and the number one private label producer worldwide. We are present in over 20 countries with revenues of €2.6bn (2018) and over 10,000 employees worldwide. For more information visit: www.froneri.com
About PAI Partners
PAI Partners is a leading European private equity firm with offices in Paris, London, Luxembourg, Madrid, Milan, Munich, New York and Stockholm. PAI manages €13.4 billion of dedicated buyout funds. Since 1994, the company has completed 71 transactions in 11 countries, representing over €50 billion in transaction value. PAI Partners is characterized by its industrial approach to ownership combined with its sector-based organisation. PAI Partners provide the companies it owns with the financial and strategic support required to pursue their development and enhance strategic value creation. www.paipartners.com
Matthew Smallwood +44(0) 207 457 2005 [email protected]
Guy Scarborough +44(0) 207 457 2020 [email protected]
Floyd Jebson +44(0) 1869 353 813 [email protected]