Goldman Sachs and Abu Dhabi Investment Authority Invest in Froneri

Goldman Sachs and Abu Dhabi Investment Authority Invest in Froneri

Goldman Sachs and the Abu Dhabi Investment Authority (ADIA) have made a significant investment in Froneri, the owner of the renowned ice cream brand Haagen-Dazs. This strategic move values the ice cream company at approximately 15 billion euros ($17.6 billion), including debt.

Froneris Ownership and Structure

Froneri is a joint venture between PAI Partners, a European buyout firm, and Nestle, the Swiss packaged food giant. Recently, PAI Partners completed a 3.6-billion-euro deal to restructure its 50% ownership in Froneri. As part of this new structure, a subsidiary of ADIA has become a significant minority co-investor, while a vehicle led by Goldman Sachs Alternatives has also acquired a stake.

Although specific details of the new ownership structure were not disclosed, sources familiar with the situation confirmed the valuation of Froneri at around 15 billion euros, including debt.

Froneris Market Position

Froneri is home to popular ice cream brands such as Haagen-Dazs and Rowntrees. It competes with major players like Unilevers soon-to-be spun-off ice cream unit, The Magnum Ice Cream Company. According to PAI Partners, Froneri boasts global revenues of $5.5 billion.

Established in 2016 as a 50:50 joint venture between Nestle and PAIs R&R Ice Cream unit, Froneri expanded its market presence by acquiring Nestles US ice cream business in 2019 for $4 billion.

Investment via Continuation Vehicle

The investment led by Goldman Sachs was executed through a single-asset continuation vehicle. This innovative tool allows private equity firms to retain assets beyond the typical lifespan of the funds used for the initial purchase.

PAI Partners reported that investor demand for the continuation vehicle was oversubscribed, indicating strong interest in Froneris growth potential.

Frederic Stevenin, co-managing partner at PAI, stated, We are proud to continue our journey with Froneri and Nestle, and to welcome ADIA and other leading global institutions as shareholders for Froneris next phase of growth.

Nestles Continued Involvement

Nestle, which retains its 50% stake in Froneri, expressed support for the new investment. 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, Nestle stated.

Despite inquiries, Nestle did not provide further comments on the deal. However, at 1200 GMT, Nestles stock experienced a slight increase of 0.4%.

Bloomberg and the Financial Times had previously reported on the potential deal and Goldman Sachs interest in Froneri.

Currency conversion: $1 equals 0.8511 euros.