PAI Partners to acquire R&R Ice Cream from Oaktree Capital

French private equity firm PAI Partners has entered into an agreement to acquire Europe’s leading private-label ice cream maker R&R Ice Cream from Oaktree Capital Management and other shareholders of R&R.

Although the financial details of the transaction have not been disclosed, the deal is expected to be valued at €850m, reports Reuters citing sources familiar with the matter.

The transaction is subject to certain financing conditions and regulatory approvals.

The acquisition is the first purchase for PAI Partners in the food industry since it acquired a stake in United Biscuits in 2006.

PAI Partners partner Colm O’Sullivan said the food and consumer brands sector is a core area of investment focus for PAI and the company is delighted to be investing in R&R.

"We look forward to working closely with the company’s management and supporting the company’s continued growth," O’Sullivan added.

R&R Ice Cream CEO and executive chairman James Lambert said: "We are very excited to be partnering with PAI and working together on our next phase of development as we continue with our growth strategy across our brands."

Following the acquisition, R&R’s senior management will continue to work for the company and PAI plans to expand R&R Ice Cream’s international business and brands.

Barclays acted as sole financial advisor to Oaktree, while Rothschild and Credit Suisse have advised PAI Partners.

R&R Ice Cream was formed in 2006 when Oaktree acquired Richmond Foods, a British ice-cream maker, and merged it with Roncadin, the leading German own-brand label ice cream manufacturer, which it had bought the year before.

Since then R&R has acquired a number of ice cream businesses including Rolland and Pilpa in France, Durigon in Germany and Eskigel, Italy’s leading own-label ice cream manufacturer.

R&R Ice Cream, based in North Yorkshire, has a strong presence in Europe, owning brands such as Kelly’s Cornish ice cream, Rowntree’s Fruit Pastille lollies, and Fab lollies, as well as Skinny Cow healthy treats.

The company has 11 production facilities across the UK and mainland Europe, and it posted revenues of approximately €600m in 2012.

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Image: Following the acquisition of R&R Ice Cream, PAI Partners plans to expand R&R Ice Cream’s international business and brands. Photo courtesy of Michael Illuchine.