Nestlé and private equity firm PAI Partners have announced a joint venture for Nestlé’s frozen pizza business in Europe. The Swiss food giant will maintain a non-controlling stake with equal voting rights alongside PAI Partners. The deal is expected to close in H2 2023, subject to employee consultations and regulatory approval.
Nestlé’s pizza business, with an annual turnover of approximately CHF 400 million, spans several countries across Europe including Germany, Italy, France, Spain, Switzerland, Portugal, Austria, Belgium, and The Netherlands. The business will operate two plants in Nonnweiler, Germany, and Benevento, Italy, and will be headquartered in Germany, led by an experienced management team.
“This transaction is testimony to our relationship with Nestlé and brings together Nestlé’s iconic brands with PAI’s depth of expertise in creating leaders in Food & Consumer. We are delighted to once again partner with Nestlé to replicate our previous success.” said Frédéric Stévenin, Managing Partner at PAI Partners.
The partnership follows the creation of successful ice cream joint venture Froneri in 2016 between Nestlé and PAI Partners.
Nestlé’s operation in the US is not part of the arrangement and remains at the core of Nestlé’s frozen food business there.
This development will allow Nestlé to explore new possibilities for future growth and value creation. The company is confident that the joint venture’s products, including those distributed under the renowned brands of Wagner, Buitoni, and Garden Gourmet, will continue to provide the very best pizza options for consumers and retail partners.
In conclusion, Nestlé’s collaboration with PAI Partners is expected to enhance its frozen pizza business in Europe, strengthen its iconic brands, and lead to increased value creation.