Nestlé to sell its ice cream business, ready to rival Unilever
Nestle, the FMCG giant, announced that it plans to hand over control to Froneri in the £3.1bn deal by the first quarter of 2020, pending customary regulatory approvals. A deal, global market watchers believe will create the world’s largest ice cream market.
Froneri was created in 2016 when Nestlé merged some of its European ice cream businesses with R&R, a business owned by private equity group PAI Partners Since then the two sides have operated Froneri as a joint venture, with Nestlé and Paris-based PAI Partners each owning stakes of just under 50% and management owning the rest.
Commenting on the move, Nestlé CEO Mark Schneider, said: “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.”
Nestlé’s ice cream brands, which include Häagen-Dazs, Skinny Cow, and Drumstick, are hoping that the merger will rival Unilever. The move is part of Nestlé chief executive’s Mark Schneider plan to divest parts of the business. Earlier this year he sold off Nestlé’s skin health unit to private equity and its life insurance arm.
Nestlé said it would continue to manage its remaining ice cream businesses in Canada, Latin America and Asia as part of its market structure.
Source: The Drum
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