Nestlé has agreed to sell its U.S. ice cream business, which includes brands like Haagen-Dazs and Drumstick, to Froneri a joint venture with private equity firm PAI Partners in a deal valued at $4 billion.
Froneri, which already had operations in Europe, Latin America, Africa, and Asia-Pacific will now have a strong presence in the U.S., the largest ice cream market in the world. The recent acquisitions of TipTop in New Zealand and Nestlé’s ice cream business in Israel have also increased Froneri’s growing global footprint.
In 2016, Nestlé and PAI Partners merged Nestlé’s European ice cream business in 20 countries and PAI-owned R&R to create Froneri.
With a portfolio of iconic brands, Froneri has been able to achieve rapid sales and profit growth, steadily gaining market share and reaching a turnover of $2.91 billion in 2018.
“The creation of Froneri has been a phenomenal success. We are now making this business our global strategic partner in ice cream and are convinced that Froneri’s successful business model can be extended to the U.S. market. With this transaction, we are taking a decisive step towards our goal of achieving global leadership in ice cream,” said Mark Schneider, Nestlé CEO.
Ibrahim Najafi, Froneri CEO, said: “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 U.S. brands into the Froneri family. The acquisition is a testament to the strength and longevity of our relationship with Nestlé. This partnership and the continued support of PAI Partners will be essential to ensuring we continue to delight consumers with innovative, high-quality products in all markets.”
The transaction is expected to close in the first quarter of 2020, following the completion of customary regulatory approvals. Nestlé will continue to manage its remaining ice cream businesses in Canada, Latin America, and Asia as part of its current market structure.
Information Provided By PRNewswire.