PAI scoops up R&R Ice Creams

Oaktree Capital, which owned an 82% stake in R&R, put the business up for sale more than a year ago. R&R's price tag was expected to reach as much as €1bn earlier this year.

PAI is believed to be looking at a €253m five-year payment-in-kind (PIK) toggle note to leverage the transaction.

The French GP is no stranger to large-cap deals in the food sector, with past investments including Yoplait, United Biscuits and frozen food specialist Chr Hansen. The GP was notably believed to have reaped a hefty 10x multiple on the sale of Yoplait to General Mills in 2011.

Previous funding
Oaktree acquired Richmond Foods plc in 2006 and subsequently merged it with German ice cream firm Roncadin to form R&R. Just a few weeks ago, the company bought ice cream business Fredericks Dairies for £49m.

Company
R&R is a Yorkshire-based manufacturer of ice cream, supplying Tesco and Carrefour store brands, as well as Nestle's KitKat, Aero and Fab ice creams. James Lambert and Jonathan Ropner founded the business in 1985. It employs 3,500 people and operates 11 production sites across Europe.

R&R posted a €600m turnover in 2012.

People
Colm O'Sullivan worked on the deal for PAI. Oaktree was represented by Jim Van Steenkiste. James Lambert is CEO and executive chairman of R&R.

Advisers
Equity – Rothschild (M&A); Credit Suisse (M&A).
Vendor – Barclays (M&A).

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• Topics
• UK / Ireland
• Buyouts
• Consumer
• Exits
• Secondary buyout
• Oaktree Capital
• PAI Partners
• United Kingdom