PAI Exploring Options for $10 Billion Nestle Ice Cream JV

Private equity firm PAI Partners is in the early stages of exploring options for its ice cream joint venture with Nestle SA that includes brands like Haagen-Dazs, according to people familiar with the matter.

The venture, Froneri, could be valued at more than $10 billion in a transaction, the people said, asking not to be identified discussing confidential information. PAI and Nestle declined to comment.

Froneri was created in 2016 when the Swiss company merged its European ice cream business with PAI-owned R&R. In 2019, Nestle sold its US ice cream operation to Froneri for $4 billion.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

Sign up

PAI could launch a so-called dual-track process in the second half of the year, exploring both a sale and initial public offering of its stake in the business, they said. Nestle is expected to retain its stake, according to the people. Nestle and PAI each own about half of Froneri.

Sales of ice cream and other treats have been threatened by the booming popularity of a new class of weight-loss drugs including Ozempic. Competition in the ice-cream market also has intensified, with a surge in upstarts selling healthier options.

Paris-based PAI, which has pursued a number of carve-outs from large companies, raised €7.1 billion ($7.6 billion) for its latest fund in November.

Source: BNN Bloomberg

Can’t stop reading? Read more