PAI's R&R buys Nestlé South Africa's ice cream business

The bolt-on was motivated by the growth prospects of the African ice cream market, which is expected to see increased demand as consumers' standards of living improve.

The deal is understood to have been financed via R&R's balance sheet.

PAI partners 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 Ice Cream launched the offering of senior secured notes worth £315m to refinance its existing bonds in 2014. The notes mature in 2020.

Company
Nestlé South Africa's ice cream business has a portfolio of brands including Dairymaid, Country Fresh, Eskimo Pie, King Cone, Rolo and Kit Kat. The business has a manufacturing facility in Johannesburg and employs around 200 people. It operates across South Africa and the sub-Saharan region.

R&R is a Yorkshire-based manufacturer of ice cream, selling 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
Colm O'Sullivan worked on the deal for PAI Partners.

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