PAI Partners considering options for Nestlé ice cream JV
PAI Partners, the Paris-based private equity firm, is in the early stages of mulling options for its ice cream joint venture with Nestlé, Bloomberg reported, citing sources familiar.
Zoom in: Froneri, the venture that includes popular frozen brands like Haagen-Dazs, could be valued at over $10 billion in a transaction.
- PAI could launch a dual-track process, seeking to explore both a sale and an IPO for its stake toward the latter half of the year, Bloomberg reports.
- Nestlé is expected to retain its stake.
Catch up fast: Nestlé sold its U.S. ice cream business to Froneri for $4 billion in 2019.
- Froneri was formed in 2016 after Nestlé combined its European ice cream business with PAI-owned R&R.
The big picture: Competition for healthier treats has put pressure on the ice cream market, as well as the rise in popularity of drugs like Ozempic used for weight loss.
PAI and Nestlé declined to comment.