Dec 12, 2019

Nestlé agrees to sell U.S. ice cream business for $4 billion

Dan Primack

Photo: Alex Tai/SOPA Images/LightRocket via Getty Images

Nestlé agreed to sell its U.S. ice cream business for $4 billion to Froneri, a joint venture Nestlé formed in 2016 with private equity firm PAI Partners.

Why it matters: This is America's second-largest ice cream group, but it's been losing market share to leader Unilever. Nestlé's plan is to follow the growth model it successfully used in Europe, under similar circumstances, whereby it merged operations with PAI-owned R&R Group to create Froneri.

Details: Brands included in the deal are Häagen-Dazs, Drumstick, Edy’s, Dreyer’s, Outshine, and Skinny Cow.

The bottom line: "Americans eat more ice cream per capita than any other people in the world, with most bought in supermarkets for consumption at home, leaving the category open to intense discounting." — Saabira Chaudhuri, WSJ

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Dan Primack

Dairy producer Borden files for bankruptcy

Borden, a Dallas-based milk and cheese producer founded in 1857, has filed for Chapter 11 bankruptcy protection.

Why it matters: This is the second major U.S. dairy to go bankrupt in the past two months, following market leader Dean Foods, with blame being placed on everything from declining milk consumption to truck driver shortages.

Go deeperArrowJan 7, 2020
Dan Primack

Security contractor Constellis in talks for $1 billion debt restructuring

Last week's storming of the U.S. embassy in Baghdad. Photo by Murtadha Sudani/Anadolu Agency via Getty Images.

Constellis, a Reston, Va.-based security contractor owned by Apollo Global Management, is in talks with creditors to restructure its $1 billion of debt or enter a pre-negotiated bankruptcy, per Bloomberg.

Why it matters: Constellis is partially responsible for security at the U.S. embassy in Baghdad, which came under assault last week — possibly precipitating the U.S. decision to kill Iranian Gen. Qassem Soleimani.

Go deeperArrowJan 6, 2020
Dan Primack

JAB Holdings to merge Jacobs Douwe Egberts with Peet's Coffee

Illustration: Sarah Grillo/Axios

JAB Holding plans to merge Dutch coffee giant Jacobs Douwe Egberts with California-based Peet's Coffee, and then IPO the combined company in 2020.

Why it matters: This could create the world's largest publicly-traded coffee roaster. Well, at least in terms of a dedicated company, as its sales remain behind market leader Nestlé.

Go deeperArrowDec 18, 2019