TLDR:
- Abu Dhabi Investment Authority (ADIA) considering a $1.1 billion investment in Nestle’s ice cream joint venture with PAI Partners, Froneri.
- PAI seeking new investors through a continuation fund to extend the lifespan of its investment in Froneri.
Full Article:
Abu Dhabi’s sovereign wealth fund, ADIA, is reportedly looking into investing around $1.1 billion in Nestle’s ice cream joint venture, Froneri, with PAI Partners. This potential deal would help PAI hold onto its stake in Froneri for a longer period and could value the business at over $10 billion.
As dealmaking has slowed in recent years, buyout firms have been turning to continuation vehicles to manage their investments, with PAI exploring options for Froneri, including a possible stock market listing. Froneri competes with Unilever’s ice cream unit and has drawn interest from buyout firms such as Advent International, Blackstone Inc., Cinven, and CVC Capital Partners.
ADIA has become an active investor in the private equity industry, participating in large deals like the potential privatization of Hargreaves Lansdown Plc and backing CVC in its bid for Deutsche Bahn AG’s logistics unit, DB Schenker.
In 2013, PAI acquired R&R Ice Cream and later merged it with part of Nestle’s ice cream business to form Froneri. This move has set the stage for potential investments from ADIA and other interested parties in the future.
