Nestlé scoops Dreyer's
into an agreement to combine Nestlé's US ice cream business with US
ice cream giant Dreyer's Grand Ice Cream.
Swiss food group Nestlé this week announced that it has entered into an agreement to combine Nestlé's US ice cream business with US ice cream giant Dreyer's Grand Ice Cream.
"This is another step in a series of recent moves we have made in the ice cream sector.
After the Häagen-Dazs and Schöller acquisitions, Nestlé now proposes an innovative deal with no immediate cash outlay that will allow us to significantly grow sales and the performance of our ice cream business in the world's highest per capita consumption market, the USA. This move underscores our commitment to growing and improving our ice cream business," said Peter Brabeck, CEO of Nestlé.
Under terms of the agreement, Nestlé will merge its ice cream business into Dreyer's in exchange for 55 million shares of Dreyer's. After completion of the transaction, Nestlé will own 67 per cent of the fully-diluted equity of the enlarged company ( Nestlé already owns 23 per cent of the outstanding shares).
In 2001 Dreyer had sales of $1402 million (€1482m) while EBITDA was $60 million. The two companies hope that combining the two operations will produce significant operating efficiencies through consolidation of manufacturing plants, marketing and administration, as well as sales and distribution.