Froneri, the ice cream group behind Häagen-Dazs, has secured fresh backing from the Abu Dhabi Investment Authority (ADIA) and Goldman Sachs Alternatives, valuing the company at around €15 billion ($17.6 billion) including debt.
The transaction involved a continuation vehicle arranged by PAI Partners, which co-owns Froneri alongside Nestlé. The total equity raised amounted to €3.6 billion, including co-investment from ADIA alongside the continuation vehicle, which represented only a portion of that total.
Founded in 2016 as a joint venture between PAI’s R&R Ice Cream and Nestlé, Froneri has expanded aggressively, including the $4 billion purchase of Nestlé’s U.S. ice cream operations in 2019. Today, the group generates $5.5 billion in annual sales from brands such as Häagen-Dazs and Rowntree’s, competing directly with Unilever’s soon-to-be spun-off Magnum Ice Cream Company.
PAI said investor demand for the continuation vehicle was oversubscribed, underlining confidence in Froneri’s growth potential. “We are proud to continue our journey with Froneri and Nestlé, and to welcome ADIA and other leading global institutions as shareholders for Froneri’s next phase of growth,” said PAI co-managing partner Frédéric Stévenin.
Nestlé added that it welcomed the new investment, describing Froneri as a “successful joint venture” and a strong player in the global ice cream market.
Source: Reuters
