Goldman Sachs and the Abu Dhabi Investment Authority (ADIA) have taken stakes in ice cream giant Froneri, the company behind Haagen-Dazs, in a deal that values the business at around €15 billion ($17.6 billion) including debt.
Froneri, which is jointly owned by PAI Partners and Nestlé, announced on Thursday that PAI had finalised a €3.6 billion transaction establishing a new ownership structure for its 50% stake. As part of the deal, a subsidiary of ADIA has become a “significant minority co-investor”, while a vehicle led by Goldman Sachs Alternatives has also acquired a shareholding. PAI declined to disclose further details about the revised ownership arrangement.
The valuation was confirmed by two sources familiar with the matter. Nestlé will continue to hold its approximate 50% stake in Froneri.
Froneri’s portfolio includes household names such as Haagen-Dazs and Rowntree’s, and it competes directly with Unilever’s soon-to-be spun-off ice cream arm, The Magnum Ice Cream Company. According to PAI, the business generates global revenues of $5.5 billion.
The company was created in 2016 as a 50:50 joint venture between Nestlé and PAI unit R&R Ice Cream, and it significantly expanded its footprint with the $4 billion acquisition of Nestlé’s U.S. ice cream division in 2019.
Goldman Sachs’ investment was made through a single-asset continuation vehicle, a structure increasingly used by private equity firms to extend their ownership of assets beyond the lifespan of the original investment fund. PAI said that demand for the vehicle was oversubscribed, reflecting strong investor confidence in Froneri’s future growth trajectory.
“We are proud to continue our journey with Froneri and Nestle, and to welcome ADIA and other leading global institutions as shareholders for Froneri’s next phase of growth,” said Frederic Stevenin, co-managing partner at PAI.
Nestlé added: “We welcome the new investment in Froneri and the continued commitment of PAI Partners. Froneri is a successful joint venture that continues to delight consumers as a strong player in the ice cream category.”
Shares in Nestlé were up 0.8% at 1400 GMT.
