In a statement issued earlier today, Paris-based PAI Partners announced that it had struck a deal with R&R Ice Cream’s current owner, Oaktree Capital Management, and other shareholders of the British ice cream manufacturer.
The acquisition is subject to regulatory approval and certain financial conditions.
Yorkshire-based R&R Ice Cream manufactures private label ice cream for the likes of Asda, Tesco, and Carrefour. It also has a strong branded ice cream portfolio, which includes Nestlé, Skinny Cow, Kelly’s of Cornwall, and Disney.
It also recently reached an agreement to acquire British ice cream manufacturer, Frederick Dairies, for £49m ($76m, €58m).
“Next phase of growth” for R&R
In a statement announcing the deal, PAI Partners confirmed that R&R Ice Cream’s senior management team would remain in place.
It has vowed to support R&R Ice Cream “through its next phase of growth, investing in the expansion of the company’s international footprint and renowned consumer brands.”
Commenting on the agreement with Oaktree, Colm O’Sullivan, partner at PAI Partners, said: “R&R is a market-leading company with a strong portfolio of innovative products and excellent potential to expand in the UK and internationally.”
“The food and consumer brands sector is a core area of investment focus and expertise for PAI and we are delighted to be investing in R&R. We look forward to working closely with the company’s management and supporting the company’s continued growth.”
R&R Ice Cream executive chairman and CEO, James Lambert, added: “We are very excited to be partnering with PAI and working together on our next phase of development as we continue with our growth strategy across our brands.”
Acquisition rumours confirmed
PAI Partners first emerged as a potential buyer for R&R Ice Cream earlier this year.
In February 2013, Sky News reported that PAI Partners were on the verge of acquiring R&R Ice Cream. Sky News estimated that the deal could be worth more than £700m ($1bn, €829m).
The Financial Times claimed, however, that Oaktree Capital Management would be looking for a deal closer to the £850m ($1.3bn, €1bn) mark.
DairyReporter.com approached R&R Ice Cream in February in regards to the acquisition rumours. The company declined to comment.