PAI Partners has completed a €3.6 billion (£3.13bn) equity transaction to establish a new ownership structure for its 50 per cent stake in Froneri, the leading pure-play ice cream company.
As part of the deal, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will join as a significant minority co-investor in Froneri, alongside PAI and a newly created single-asset continuation vehicle (CV). The CV, led by Vintage Strategies at Goldman Sachs Alternatives, is among the largest of its kind in Europe and was oversubscribed — signalling strong investor confidence in Froneri’s long-term prospects.
The transaction follows a successful debt financing earlier this year that further strengthened Froneri’s balance sheet and will support its next phase of expansion, whose portfolio includes brands such as Häagen-Dazs, Mövenpick and Nestlé ice creams.
Formed in 2016 as a 50:50 joint venture between PAI’s R&R Ice Cream and Nestlé’s European ice cream business, Froneri has grown into a €5.5 billion global company. It now leads across key international markets, combining a portfolio of household-name ice cream brands with strong innovation capabilities, efficient operations and a growing presence in premium and snacking segments.
“Froneri is a clear example of PAI’s ability to create and grow global champions in the consumer sector,” Frédéric Stévenin, co-managing partner at PAI Partners, said. “Since we first partnered with Nestlé in 2016, the business has expanded into new markets, strengthened its branded portfolio and established itself as a global leader. 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.”
Froneri CEO Phil Griffin added: “Froneri has grown into one of the world’s leading ice cream companies since its formation in 2016. The renewed commitment of our partners, combined with the addition of new investors and capital, reflects confidence in our business and reinforces the strong partnership that underpins our growth.”
ADIA’s Executive Director of Private Equities, Hamad Shahwan Aldhaheri, said the deal represents “a compelling opportunity to support the company for its next phase of growth alongside experienced and proven partners.”