Nestlé and R&R, a leading ice cream company based in the U.K. and owned by PAI Partners, agree to set up Froneri, a global ice cream and frozen food joint venture with sales of approximately CHF 2.7 billion, in more than 20 countries employing about 15,000 people. Froneri will be headquartered in the U.K. and will operate mainly in Europe, the Middle East (excluding Israel), Argentina, Australia, Brazil, the Philippines and South Africa.
The new company will combine Nestlé and R&R’s ice cream activities in the relevant countries and will include Nestlé’s European frozen food business (excluding pizza and retail frozen food in Italy), as well as its chilled dairy business in the Philippines, Nestle announced on April 27. Financial details are not being disclosed.
Paul Bulcke, Nestlé's CEO, says the venture is an exciting growth opportunity in a dynamic category. "Froneri will capitalize on complementary strengths and innovation expertise, combining Nestlé’s strong and successful brands and experience in 'out-of-home' distribution with R&R’s competitive manufacturing model and significant presence in retail."
"R&R has gone from strength to strength in the last few years and the blend of people from the two organizations will create a leading team, ideally suited to drive future growth," stated Ibrahim Najafi, R&R Ice Cream's CEO.
Luis Cantarell, Nestlé's executive vice president Europe, Middle East and North Africa, will chair Froneri’s board of directors, which will be composed of three senior Nestlé executives and three senior executives appointed by private equity firm PAI Partners, R&R’s owner. Ibrahim Najafi will become Froneri's CEO. Nestlé and PAI will have equal equity interests in the joint venture.