Friday, 13 December 2019 11:26

Tip Top’s owner pays $6b for US ice cream business

Written by  Staff Reporters

The new owner of Tip Top Ice Cream, Froneri is paying over $6 billion for Nestle’s US ice cream business.

The deal, which includes some of North America’s iconic brands, will propel Froneri to become the number two global ice cream player.

Froneri was created in 2016 as a joint venture between PAI Partners and Nestlé: UK-based Froneri is the second largest manufacturer of ice cream in Europe and the number one private label producer worldwide. 

In a statement, Froneri says the acquisition includes iconic and well-loved ice cream brands including Dreyer’s, Häagen-Daaz, Outshine, Skinny Cow, Edy’s, Nestlé Ice Cream and Drumstick.

Froneri paid Fonterra $380m for Tip Top earlier this year after the dairy co-op decided to offload assets to salvage its balance sheet.

Commenting on the US acquisition, Froneri chief executive Ibrahim Najafi says this is another milestone acquisition for the company “as we drive towards becoming the world’s best ice cream company”. 

“We’re delighted to be bringing such well-loved US brands into the Froneri family.”

Froneri says the acquisition brings with it a high-calibre management team and extensive in-market knowledge, as well as marketing, manufacturing, sales and distribution capabilities.  It employs more than 2,300 people across the US with 2018 sales of $2.7b.

Froneri is present in over 20 countries with revenues of $4.4b and over 10,000 employees worldwide. Unilever is the world’s biggest ice cream maker.

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