PAI's R&R merges with Nestlé's ice cream activities

R&R will commit its entire business to the enlarged group, which will be headquartered in the UK.

Nestlé will contribute its ice cream businesses in Europe, the Middle East (excluding Israel), Argentina, Australia, Brazil, the Philippines and South Africa. Its chilled dairy business in the Philippines and its European frozen food companies – aside from pizza and Italian frozen food – are also part of the deal.

Each party will own an equal stake in the venture, should it receive regulatory approval.

R&R and Nestlé already have a shared history: in 2015, the former acquired the ice cream activities of Nestlé South Africa. The deal was understood to have been financed via R&R's balance sheet.

PAI will appoint three executives to the Froneri board, which will be chaired by Luis Cantarell, Nestlé's executive vice-president for Europe, the Middle East and north Africa.

Previous funding
PAI struck a deal to buy R&R Ice Cream from Oaktree Capital for €850m in 2013. Oaktree had acquired Richmond Foods in 2006 and subsequently merged the company with German ice cream firm Roncadin to form R&R. PAI turned to a €253m PIK toggle note to finance the acquisition, which allowed it to keep R&R's existing senior secured bonds in place.

R&R launched the offering of senior secured notes worth £315m to refinance its existing bonds in 2014. The notes mature in 2020.

Company
Yorkshire-based R&R sells its products under a variety of brands including Fab Lollies, Kelly's Cornish Ice Cream and Skinny Cow. James Lambert and Jonathan Ropner founded the business in 1985.

People
PAI Partners – Frédéric Stévenin (partner).
R&R Ice Cream – Ibrahim Najafi (CEO).
Nestlé – Paul Bulcke (CEO).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Restructuring
• UK / Ireland
• Consumer
• United Kingdom
• PAI Partners