Froneri, a prominent ice cream manufacturer based in the UK, has entered into agreements to acquire Food Union’s European ice cream business.
The financial specifics of this deal were not disclosed.
According to a joint statement released by Food Union on 15 October, the sale is expected to finalize within the “coming months.”
This transaction encompasses Food Union’s European markets, including Norway, Denmark, Lithuania, and Romania.
While the deal covers Latvia, the dairy business within this area will not be included, ensuring its current ownership remains unchanged, as stated.
Froneri will maintain the existing management team of Food Union to lead the business, ensuring continuity.
Food Union boasts several well-known ice cream brands, such as Premia in the Baltics, Jocker in Lithuania, and Isbjørn Is in Norway.
For Froneri, this acquisition presents an opportunity to create new growth paths and reinforce its commitment to delivering high-quality ice cream to consumers.
The company currently offers a diverse ice cream portfolio that includes respected brands like Nuii and Häagen-Dazs.
Commenting on this acquisition, Froneri CEO Phil Griffin noted: “Food Union has built a portfolio of locally loved brands which we plan to invest in to further develop the significant potential of the business.”
“We look forward to welcoming the Food Union team to Froneri to support our ambition to be the world’s best ice cream company.”
Food Union Executive Chairman Soren Lauridsen echoed these sentiments, stating: “Froneri is the global benchmark in ice cream, and we’re delighted that our people and brands have found a perfect home with a truly world-class leader.”
“Under Froneri’s stewardship, these brands will gain broader reach and the strengths of a global portfolio and capabilities, while preserving the local character and quality consumers love. We look forward to building the next chapter together.”
Earlier this month, PAI Partners restructured its shareholding in Froneri with a minority investment from the Abu Dhabi Investment Authority (ADIA).
The London-headquartered private equity firm acquired a 50% interest in Froneri in 2016 through a joint venture with Nestlé, merging its European ice cream operations with UK-based R&R Ice Cream, under the ownership of PAI Partners.
ADIA, which operates on behalf of the Abu Dhabi government, purchased a minority, undisclosed share of PAI Partners’ 50% stake via a wholly-owned subsidiary as a co-investor with the private equity firm.
Meanwhile, Goldman Sachs, through Vintage Strategies at Goldman Sachs Alternatives, is set to reinvest in Froneri through a single-asset continuation vehicle (CV).
