PAI Partners Welcomes ADIA as Co-Investor in Froneri, Extending Stake in Global Ice Cream Giant
PAI Partners has welcomed Abu Dhabi Investment Authority (ADIA) as a minority co-investor in Froneri, the global ice cream company. This move comes as part of a €1.75 billion financing deal that also saw Goldman Sachs Asset Management contribute €1.4 billion to a new continuation fund.
PAI's involvement with Froneri dates back to 2016, when it combined R&R Ice Cream with Nestle's ice cream division to create the company. Now, PAI is employing an innovative structure to retain its stake in Froneri beyond the typical tenure for buyout firms. This is the second such continuation vehicle for Froneri, making it a rare occurrence.
The new fund values Froneri at €15 billion including debt. PAI and ADIA are jointly investing €1.4 billion directly into the company, which boasts popular brands like Haagen-Dazs. PAI initially invested in the ice cream business over a decade ago, acquiring UK-based R&R Ice Cream in 2013.
The new continuation fund, led by Goldman Sachs Asset Management, will allow PAI and ADIA to maintain their stakes in Froneri. This deal reflects the growing trend of buyout firms using innovative structures to hold onto their most successful assets for longer periods.
