Abu Dhabi Invests In Froneri As Pai Partners Restructures Jv Stake

Froneri crystal pick marque Nuii. Credit: @NuiiIceCream / Facebook

PAI Partners has restructured its shareholding successful ice-cream group Froneri pinch a number finance from nan Abu Dhabi Investment Authority (ADIA).

The London-headquartered private-equity patient bought a 50% liking successful Froneri successful 2016 done a associated task pinch Nestlé, erstwhile nan nutrient elephantine merged its European ice-cream operations pinch UK-based R&R Ice Cream, owned by PAI Partners.

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ADIA, which invests connected behalf of nan Abu Dhabi government, is acquiring a minority, undisclosed information of PAI Partners’ 50% stock via a wholly-owned subsidiary arsenic a co-investor pinch nan private-equity firm.

Meanwhile, Goldman Sachs, via Vintage Strategies astatine Goldman Sachs Alternatives, is reinvesting successful UK-based Froneri done a alleged single-asset continuation conveyance (CV).

The mixed transactions, described by PAI Partners arsenic an “equity transaction to reinvest into Froneri”, are weighted astatine €3.6bn ($4.2bn), according to a statement. There is nary alteration successful Nestlé’s investment.

In position of nan CV broadside of nan transaction, PAI Partners said: “The CV constitutes 1 of nan largest single-asset CV transactions successful Europe to date. The CV was oversubscribed, reflecting beardown request from some existing and caller investors, and assurance successful Froneri’s semipermanent maturation prospects.”

Frédéric Stévenin, a co-managing partner astatine PAI Partners, added: “Since we first collaborated pinch Nestlé successful 2016, nan business has successfully expanded into caller markets, strengthened its branded portfolio and established itself arsenic a world leader.

“We are proud to proceed our travel pinch Froneri and Nestlé, and to invited ADIA and different starring world institutions arsenic shareholders for Froneri’s adjacent shape of growth.”

The 2016 business mixed Nestlé’s and R&R’s ice-cream operations successful Europe, nan Middle East, Argentina, Australia, Brazil, nan Philippines and South Africa. While nan US and Israel were not included successful 2016, 3 years later nan second was besides pulled nether nan Froneri umbrella.

Nestlé past sold its US ice-cream operations nan aforesaid twelvemonth to Froneri.

Froneri is simply a branded ice-cream shaper but besides produces backstage label. The business generated a 4.5% summation successful income past twelvemonth to €5.53bn.

It booked a profit earlier taxation of €432.8m, compared to a corresponding nonaccomplishment of €56.6m. Net profit turned astir to present a affirmative €344.6m versus a €47.3m loss.

Hamad Shahwan Aldhaheri, an executive head of nan private-equity section astatine ADIA, described Froneri arsenic “a starring world user business pinch beardown prospects for nan future”.

He added: “This transaction offers a compelling opportunity to support nan institution for its adjacent shape of maturation alongside knowledgeable and proven partners.”

Froneri houses brands specified arsenic Cadbury, Connoisseur, Drumstick, Extrême, Häagen-Dazs (US), Maxibon, Milka, Mövenpick, Nuii, Oreo and Outshine, according to its latest yearly report, immoderate nether licence pinch nan genitor companies.

In a trading update for nan caller financial twelvemonth issued successful September, Froneri said it completed an acquisition successful December for Crufi, a family-run ice-cream business successful Uruguay nether its ain marque name.

Earlier this year, Froneri signed a deal pinch Lotus Bakeries and Mondelez International to nutrient Lotus Biscoff crystal creams successful prime European markets.

Performance figures for nan first half to 30 June were not provided past period but Froneri said it had “delivered growth”, contempt “unavoidable” prices summation successful nan opening 4th and last 3 months of 2024 linked to cacao consequence prices.

It said nan business recorded “volume maturation extracurricular of nan US”, wherever it saw immoderate “elasticity successful demand”, which recovered successful nan 2nd quarter.

Froneri CEO Phil Griffin said: “The renewed committedness of our partners, mixed pinch nan summation of caller investors and capital, reflects assurance successful our business and reinforces nan beardown business that underpins our growth.”

Gabriel Mollerberg, a managing head astatine Goldman Sachs Alternatives, added: “We are excited to proceed nan travel pinch Froneri and business pinch PAI. Froneri’s marketplace positioning, charismatic financial characteristics, exceptional operational execution and beardown alignment pinch each cardinal shareholders made it a beardown continuation conveyance candidate.”