ADIA & Nestle’s Ice Cream Venture includes brands like Haagen-Dazs.
The Abu Dhabi Investment Authority is in talks of investing a minimum of €1 billion ($1.1 billion) in Nestle’s SA’s ice cream joint venture. The venture includes brands like Haagen-Dazs as per the people who are aware of the matter.
Abu Dhabi’s biggest sovereign which has almost $1 trillion of assets in control is considering and in talks with the advisors as it is considering committing fresh capital to the Fenori ice cream venture by Nestle with the buyout PAI Partners.
As per sources, the deal would help PAI hold onto its Froneri stake for longer and could value the business at $10 billion. PAI wanted help to extend the lifespan of its investment in Froneri and hence was seeking new investors for a continuation fund.
Although no final verdict or agreement was reached with ADIA while other investors could also come up to back Froneri. The confirmation was declined by the representatives of ADIA, Nestle and PAI.
Buyout firms have increasingly turned to continuation vehicles to address a backlog of investments as dealmaking has slowed in recent years. This year, PAI began evaluating strategic options for Froneri, including a prospective public market listing.
Froneri has competitors like Unilever Plc’s ice cream unit. Buyout firms such as Advent International, Blackstone Inc., Cinven, and CVC Capital Partners Plc have expressed an initial interest in the business.
In the last few years, ADAI has emerged as one of the most active investors in the private equity industry. The invest authority offers capital to a few of the sector’s largest deals.
The wealth fund teamed up with investors including CVC on a potential transaction to take Hargreaves Lansdown Plc private for about £5.4 billion ($7 billion). It is also among the investors backing CVC’s bid for Deutsche Bahn AG’s logistics unit DB Schenker, which could be worth €15 billion or more.
PAI acquired UK-based R&R Ice Cream in 2013 from Oaktree Capital Management and other investors. In 2016, it merged that firm with a portion of Nestle‘s ice cream empire to form Froneri.