French investment company PAI Partners has raised 3.6 billion euros ($4.2 billion) as part of a joint venture between Froneri and Swiss Nestle SA for the production of ice cream. This is reported in the PAI press release.
As part of the deal, Abu Dhabi Investment Authority (ADIA) will become a minority co-investor of Froneri along with PAI. At the same time, ADIA and PAI will jointly invest 1.4 billion euros directly in Froneri. The total value of Froneri's business, which owns the Häagen-Dazs brand in the United States, is estimated at 15 billion euros, including debt obligations.
The partnership between PAI and Nestle began in 2016 after the merger of the assets of R&R Ice Cream and the division of the Swiss concern, and PAI intends to expand its presence in the markets through the acquisition of assets.
Froneri, which is considered the world's second largest producer of ice cream after Magnum Ice Cream, was established in 2016. The company's revenue grew from 2.6 billion euros in 2019 to 5.5 billion euros in 2024.
In addition, PAI, which owns 50% of Froner shares, plans to create a "continuation vehicle" in the amount of 1.75 billion euros in order to preserve investments for a longer period. The fund's lead investor will be Goldman Sachs Alternatives.
Share buyback companies have often turned to innovative structures in order to preserve the most efficient assets, attracting their own investors to finance transactions.
PAI Partners is a French leveraged equity buyback investment company. The company invests in the production of food and consumer goods, industry, healthcare, retail and distribution. The headquarters is located in Paris (France).
Froneri is a British ice cream manufacturer with headquarters in Leeming Bar (England). The company is the largest manufacturer in Europe by volume and the second in the world after Unilever. The company is a licensed partner of Nestlé and Mondelēz. The company's revenue grew from 2.6 billion euros in 2019 to 5.5 billion euros in 2024.
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