R&R Ice Cream to acquire Peters Foods

UK-based ice cream manufacturer R&R Ice Cream has agreed to acquire Australia-based Peters Food Group from private equity firm Pacific Equity Partners (PEP).

Although the sale price has not been disclosed, local media previously reported that PEP was planning to sell Peters in a private sale or through IPO, valuing it at around A$450m ($416.21m).

Peters produces a range of ice creams, including the Drumstick, Connoisseur, Peters Original and Maxibon brands, and generates annual sales of around A$269m ($248.91m).

Peters, which was acquired by PEP from Nestlé in 2012, has seen a significant transformation driven by investment in its core brands, substantial new product development and improvement in operating costs.

With this acquisition, R&R is seeking to establish its position as a leading ice cream manufacturer with a unique presence both in the European and Australian markets and significant increased potential for international expansion.

Peters CEO Stephen Audsley said that with the backing of R&R, Peters will continue to invest in its market-leading brands and in its long history of innovation.

"Manufacturing will continue at our world-class facility in Mulgrave from which we intend to create new opportunities for growth," Audsley said.

R&R CEO Ibrahim Najafi said that the company is delighted to have come to an agreement with Peters and PEP.

"Peters is an iconic Australian business and the leader in the Australian ice cream manufacturing market; it will be an exciting complement to R&R’s European presence. We look forward to working with Stephen and his team and accelerating our growth as one combined business," Najafi added.

Following the acquisition, the existing Australian executive leadership team will continue to develop the Peters business locally and as part of the broader global R&R business.

R&R is the largest private label ice cream manufacturer in Europe and the second largest ice cream manufacturer overall in Europe.

The company generated revenues of approximately A$968m ($895.71m) for the year ending 31 December 2013.