Blackstone and CD&R are reportedly considering the acquisition of The Magnum Ice Cream Company (TMICC), which was recently spun off from Unilever but remains partially owned by the FMCG giant.
TMICC made its debut on the stock exchanges in London, Amsterdam, and New York late last year after separating from Unilever. Industry sources cited by Reuters suggest that the private equity firms are exploring potential bids for this ice cream enterprise.
According to insiders, Blackstone and CD&R are in the preliminary phases of assessing their bids for TMICC. They are also closely monitoring the company’s stock performance, as reported by Reuters on May 15. Seasonal factors, such as TMICC’s ice cream sales during the summer months, are also part of their evaluation.
Both Blackstone and CD&R declined to comment on this matter, while TMICC acknowledged Just Food‘s request for commentary but had not provided a response by the time of writing.
As of 13:20 BST, TMICC’s shares were trading at 1,260 pence in London, showing an increase of nearly 12% for the day and an 8.6% rise year-to-date.
Unilever still holds a 19.9% stake in the branded ice cream business but has indicated plans to gradually divest this share over the next five years.
TMICC recently reported its first-quarter results, revealing a 2.9% growth in organic volumes under CEO Peter ter Kulve, compared to 1.4% in the same quarter the previous year.
“Our operational rigor is improving,” ter Kulve stated during an analyst call last month. “I’m especially pleased with the volume contribution. This represents the quality growth we aim for and reflects our efforts in innovation and execution.”
Ter Kulve emphasized that this growth is evident across all regions of the business, showcasing the effectiveness of their strategy.
Despite challenges stemming from disruptions in the Middle East affecting energy prices and supply chains, TMICC has maintained its guidance for 3-5% organic sales growth for the full year, having achieved 4.5% growth in the first quarter, totaling €1.77 billion ($2.07 billion).
Following its spin-off from Unilever, TMICC positioned itself as the world’s largest standalone ice cream manufacturer. In December, it claimed a 21% share of the global market, nearly double that of its closest competitor, Froneri, which holds an 11% share.
Unlike Froneri, which focuses on both branded and private-label products and is partially owned by Nestlé and PAI Partners since 2016, TMICC exclusively targets the branded ice cream sector, featuring renowned names like Wall’s, Cornetto, and Ben & Jerry’s.
This strategic positioning aligns well with the current trends in the food and beverage industry, emphasizing the importance of brand recognition. Moving forward, this focus may enhance TMICC’s standing in the evolving food and drink business landscape, in line with consumer trends favoring established and trusted brands.
