Froneri, the UK-based ice cream firm, has announced it is expanding into North America with the acquisition of the Nestle USA ice cream business for $4 billion.
The deal would move Froneri “towards global leadership” in the ice cream category, the company said.
The Nestle US ice cream brand portfolio includes Dreyer’s, Haagen-Daaz, Outshine, Skinny Cow, Edy’s, and Drumstick, in addition to the Nestle brand itself. The business unit employs more than 2,300 people across the USA and had sales of $1.8 billion in 2018.
“The acquisition of Nestlé USA’s ice cream business, the 2nd largest ice cream manufacturer in the USA, propels Froneri to become the 2nd largest manufacturer globally and marks its first entry into the US ice cream market”, Froneri said in a statement.
Commenting on the deal, Froneri CEO Ibrahim Najafi said: “Nestlé USA’s ice cream business is a well-invested and growing business, which has successfully capitalised on the global consolidation of retailers and is set for further growth. There is great opportunity for us to now build on this, benefitting the business globally and providing opportunity and development potential for our people. We will continue to invest, innovate and develop the business further”.