PEP exits Australia's Peters Ice Cream to UK's R&R

Financial details were not disclosed but local reports value the deal at around A$450 million ($416 million).

Founded in 1907 and headquartered in New South Wales, Peters' most popular brands include Drumstick, Connoisseur, Peters Original and Maxibon. PEP acquired Peters from Swiss food and beverage giant Nestlé for around $304 million in 2012 via PEP Fund IV, a A$4 billion vehicle which reached a final close in 2008.

During the holding period, Peters invested significantly in its core brands and new product development, as well as making improvements to its operating costs. The company now generates annual sales of around A$269 million.

Founded in 1985, R&R is the largest private label ice cream manufacturer in Europe by volume. It is owned by French private equity firm PAI Partners, which acquired the business from Oaktree Capital in a EUR850 million ($1.15 billion) deal last April.

R&R holds licenses to sell ice cream products under the Cadbury, Dairy Milk, Oreo, Smarties and Kit-Kat brands - all of which are owned by Nestlé - as well as the Mondelez and Disney brands. It owns YooMoo frozen yogurt and Kelly's of Cornwall.

"The successful transformation of the Peters business underscores our ability to combine outstanding management, operational experience and industry knowledge to individual companies, resulting in strong returns for our investors," said Tony Duthie, managing director at PEP, in a statement.

"We are pleased that a company of R&R's pedigree will help drive the future of the Peters' business alongside the existing skilled and committed Australian management team."

The sale comes days after PEP made a partial exit from cleaning and catering contractor Spotless Group via the company's A$994.6 million IPO. 

 

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• Topics
• Australasia
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• Buyouts
• Buyout
• Australia
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• Pacific Equity Partners
• buyout