The investment comes as part of a €3.6bn ($3.9bn) equity transaction that establishes a new ownership structure for PAI Partners’ approximately 50 per cent stake in the company.
The transaction includes the creation of a single-asset continuation vehicle led by Vintage Strategies at Goldman Sachs Alternatives. ADIA will co-invest alongside PAI Partners and other leading global institutions.
ADIA invests in Froneri
Froneri, formed in 2016 through a 50:50 joint venture combining PAI’s R&R Ice Cream with Nestlé’s European ice cream business, has since grown into a global brand-led company with €5.5bn ($6bn) in revenue.
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said: “Froneri is a leading global consumer business with strong prospects for the future. This transaction offers a compelling opportunity to support the Company for its next phase of growth alongside experienced and proven partners.”
Frédéric Stévenin, Co-Managing Partner at PAI Partners, said: “Froneri is a clear example of PAI’s ability to create and grow global champions in the consumer sector. Since we first partnered with Nestlé in 2016, the business has successfully expanded into new markets, strengthened its brand portfolio and established itself as a global leader.
“This success is also a testament to the strength and commitment of Froneri’s management team. We are proud to continue our journey with Froneri and Nestlé, and to welcome ADIA and other leading global institutions as shareholders, for Froneri’s next phase of growth.”
Abu Dhabi takes share in Froneri
Phil Griffin, CEO of Froneri, said: “Froneri has grown into one of the world’s leading ice cream companies since its formation in 2016.
“The renewed commitment of our partners, combined with the addition of new investors and capital, reflects confidence in our business and reinforces the strong partnership that underpins our growth.”
Gabriel Mollerberg, Managing Director at Goldman Sachs Alternatives, said: “We are excited to continue the journey with Froneri and partnership with PAI as the lead investor in the new continuation vehicle.
“Froneri’s market positioning, attractive financial characteristics, exceptional operational execution and strong alignment with all key shareholders made it a strong continuation vehicle candidate.
“We look forward to this next chapter alongside PAI and management.”
Evercore acted as the sole financial adviser to PAI Partners on the continuation vehicle transaction.
Rothschild served as sole financial adviser to Froneri, while Deutsche Bank acted as exclusive financial adviser to ADIA.
