PAI Partners Sells Majority Stake in Froneri for €15 Billion
Private equity firm PAI Partners has agreed to sell a majority stake in its ice cream business, Froneri, in a deal valuing the company at €15 billion including debt. The sale comes after over a decade of ownership by PAI, which initially invested in 2013 and combined Froneri with part of Nestlé's ice cream empire in 2016.
PAI is establishing a new continuation fund to maintain its stake in Froneri, with Goldman Sachs Asset Management as the lead investor. This investment amounts to €1.75 billion. Additionally, the Abu Dhabi Investment Authority (ADIA) will become a minority co-investor in Froneri, contributing €1.4 billion directly into the business. Notably, Nestlé will serve as the lead investor for the new continuation fund, financing PAI's long-term ownership of Froneri.
This transaction marks the second time PAI has moved its Froneri holding into a continuation vehicle. In 2019, it did so alongside Italian eyewear manufacturer Marcolin SpA. PAI's initial investment in Froneri, combined with Nestlé, totalled €3.6 billion ($4.2 billion).
The sale of a majority stake in Froneri to ADIA and the establishment of a new continuation fund with Nestlé and Goldman Sachs Asset Management reflect PAI's long-term commitment to the ice cream business. This deal underscores the value and potential of Froneri in the global market.
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