Nestle teams up with UK’s leading ice cream maker
Nestle has sealed an M&A deal with a leading company in the United Kingdom, R&R Ice Cream.
In a statement, Nestle said it is setting up a joint venture company the UK’s R&R Ice Cream. Nestle said the transaction is still subject to employee consultations and regulatory approval and that “financial details are not being disclosed.”
The joint venture, to be named Froneri, will be headquartered in the United Kingdom and will operate in Europe, the Middle East, Argentina, Australia, Brazil, the Philippines, and South Africa, a statement from Nestle said.
The new company will combine Nestlé and R&R’s ice cream activities in the countries they operate, such as Nestlé’s European frozen food business minus its pizza and retail frozen food, as well as its chilled dairy business in the Philippines.
Details of the apparent merger are not available and Nestle said “financial details are not being disclosed.”
Froneri’s board of directors will be composed of three senior executives from Nestle and three senior executives to be appointed by PAI Partners. PAI Partners is a leading private equity investor in the French market which owns R&R Ice Cream.
Froneri’s CEO will be Ibrahim Najafi, R&R Ice Cream CEO.
The transaction is subject to employee consultations and regulatory approval.
Froneri’s sales is seen at CHF 2.7 billion in over 20 countries including the Philippines, and will employ some 15,000.
“This is an exciting growth opportunity in a dynamic category. Froneri will capitalise on complementary strengths and innovation expertise, combining Nestlé’s strong and successful brands and experience in ‘out-of-home’ distribution with R&R’s competitive manufacturing model and significant presence in retail,” Nestle CEO Paul Bulcke said.
“I am thrilled about the potential of Froneri and the opportunity for R&R to combine with the biggest and best food business in the world. R&R has gone from strength to strength in the last few years and the blend of people from the two organisations will create a leading team, ideally suited to drive future growth,” Najafi said.
“Froneri, through the combination of Nestlé’s and R&R’s expertise, and the backing of PAI Partners, is a unique and exciting opportunity for further strong growth. We look forward to further leveraging our industrial approach to ownership and strong consumer expertise to support R&R in this new venture,” said Frederic Stevenin of PAI Partners. (By: Eileen A. Mencias)