Nestlé sells ice cream business to Froneri for US$4 billion
Confectionery giant Nestlé has sold its US ice cream business,
which includes Häagen-Dazs, Drumstick and Outshine, to its joint venture ice cream company, Froneri, for US$4 billion. Nestlé and PAI Partners created the business in 2016 and merged Nestlé’s European ice cream division in 20 countries.
Froneri currently operates in Europe, Latin America, Africa and Asia Pacific and has achieved strong sales and profit growth. Nestlé’s acquisition of TipTop in New Zealand also pushed Froneri’s global presence.
“The creation of Froneri has been a phenomenal success. 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 US market. With this transaction, we are taking a decisive step towards our goal of achieving global leadership in ice cream,” Mark Schneider, Nestlé CEO, said.
Ibrahim Najafi, Froneri CEO described it as a “milestone acquisition” for Froneri in its plans to become the world’s best ice cream company.
“We’re delighted to be bringing such well-loved US brands into the Froneri family. The acquisition is testament to the strength and longevity of our relationship with Nestlé,” Najafi said.
The transaction will be finalised in the first quarter of 2020. Nestlé will continue its ice cream businesses in Canada, Latin America and Asia as part of its current market structure.