Swiss multinational food and drink processing company Nestlé has signed an agreement to sell its US ice-cream business to Froneri in a deal valued at $4bn.
Froneri is an ice-cream-focused joint venture (JV) company that was created by Nestlé and PAI Partners.
The PAI-owned R&R and Nestlé’s European ice-cream business in 20 countries merged in 2016 to create Froneri.
Froneri will acquire ice-cream brands including Dreyer’s, Häagen-Daaz, Outshine, Skinny Cow, Edy’s, Nestlé Ice Cream and Drumstick.
Nestlé CEO Mark Schneider said: “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.”
With this acquisition, Froneri will become the second-largest manufacturer of ice-cream globally. This marks its first entry into the ice-cream market in the US.
Froneri has already established a presence in Europe, Latin America, Africa and Asia-Pacific regions.
Recently, the company acquired TipTop in New Zealand and Nestlé’s ice-cream business in Israel, further expanding its global footprint.
The companies involved expect to complete the deal in the first quarter of next year.
Nestlé said that it will retain and manage its remaining ice-cream businesses in Canada, Latin America and Asia.
Froneri CEO Ibrahim Najafi said: “This is another milestone acquisition for Froneri as we drive towards becoming the world’s best ice-cream company.
“The acquisition is a testament to the strength and longevity of our relationship with Nestlé. This partnership and the continued support of PAI Partners will be essential to ensuring we continue to delight consumers with innovative, high-quality products in all markets.”
