Goldman Sachs, Abu Dhabi Fund Invest in Häagen-Dazs Owner Froneri in €15bn Deal

Goldman Sachs and the Abu Dhabi Investment Authority (ADIA) have taken stakes in ice cream maker Froneri, the company behind global brands such as Häagen-Dazs and Rowntree’s, in a deal valuing the business at about €15 billion ($17.6 billion), including debt.

Froneri, a joint venture between European private equity firm PAI Partners and Swiss food giant Nestlé, has grown into one of the world’s largest ice cream companies, competing with Unilever’s soon-to-be spun-off ice cream division, The Magnum Ice Cream Company. According to PAI, Froneri generates annual revenues of $5.5 billion.

On Thursday, PAI announced it had completed a €3.6 billion transaction creating a new ownership structure for its 50 percent stake in Froneri. As part of the deal, a subsidiary of ADIA has become a “significant minority co-investor,” while a Goldman Sachs-led investment vehicle also acquired a stake. Although PAI did not disclose specific details of the restructured ownership, two people familiar with the matter confirmed the valuation.

The deal was executed through a so-called single-asset continuation vehicle, a private equity tool that allows firms to hold onto valuable assets beyond the lifespan of the original fund. PAI said investor demand for the vehicle was oversubscribed, reflecting strong confidence in Froneri’s growth prospects.

“We are proud to continue our journey with Froneri and Nestlé, and to welcome ADIA and other leading global institutions as shareholders for Froneri’s next phase of growth,” said Frédéric Stévenin, co-managing partner at PAI.

Nestlé, which retains its 50 percent holding in the ice cream group, welcomed the new investment. “We welcome the new investment in Froneri and the continued commitment of PAI Partners,” the company said in a statement. “Froneri is a successful joint venture that continues to delight consumers as a strong player in the ice cream category.”

Froneri was created in 2016 as a 50:50 joint venture between Nestlé and PAI’s R&R Ice Cream. It significantly expanded its footprint in 2019 with the $4 billion acquisition of Nestlé’s U.S. ice cream business, bringing brands such as Dreyer’s, Skinny Cow, and Outshine into its portfolio.

The company’s new backers join as competition in the global ice cream market heats up. Unilever is preparing to spin off its own ice cream business, home to Magnum and Ben & Jerry’s, into a separate entity.

At midday trading on Thursday, Nestlé’s stock edged up 0.4 percent in Zurich following news of the deal.

The transaction was first reported by Bloomberg and the Financial Times, which highlighted Goldman Sachs’ interest in securing a stake.