“This acquisition strengthens Froneri’s position as a world leader in ice cream, bringing Häagen-Dazs into its growing portfolio,” said a company spokesperson.
Froneri, the multinational ice cream giant responsible for some of the world’s favourite brands, such as Häagen-Dazs, Oreo, and Cadbury ice creams, is poised to embark on a new chapter.
Goldman Sachs has agreed to invest in the business at a reported €15 billion valuation inclusive of debt. The deal is structured by way of a continuation vehicle set up by private equity house PAI Partners and is set to be completed as soon as September 2025.
Froneri was established in 2016 as a joint venture between PAI and Nestlé, combining their respective ice cream businesses throughout Europe. In 2019, Nestlé sold its United States ice cream business.
Häagen-Dazs—to Froneri in a transaction valued at around $4 billion, making the firm the globe’s second-largest ice cream manufacturer after Unilever’s Magnum spin-off.
Since its establishment, Froneri has expanded quickly and dramatically. It’s revenues increased more than two-fold from €2.6 billion in 2019 to €5.5 billion in 2024.
An independent financial valuation estimates Froneri at a multiple of approximately 2.7 times sales, or about 12.5 times adjusted EBITDA, highlighting its size and profitability.
Goldman Sachs will deploy capital from its \$14 billion secondaries fund to become the lead investor in PAI’s continuation vehicle. This allows PAI to retain exposure to Froneri within both the new vehicle and its flagship fund, while Nestlé maintains its existing 50 percent stake.
Vehicles are increasingly common in the private equity landscape. They provide a method to maintain ownership of valuable assets beyond the typical fund lifespan by attracting new capital and offering liquidity to exiting investors. In Froneri’s case, the move reflects PAI’s confidence in the business, especially after previously launching a first continuation vehicle in 2019.
The proposed deal has several strategic and financial implications. Ice cream continues to be a resilient consumer category with high brand loyalty and consistent demand. Market analysts put the global ice cream market at as much as $75 billion, which makes Froneri an attractive asset in a sector that has the potential to premiumise, innovate, and grow through e-commerce.
Goldman’s participation is especially thoughtful. It introduces extensive experience in structuring elaborate recapitalisations, particularly in consumer goods and private equity. Another analysis points out Goldman’s background in maximising highly leveraged transactions and matching recapitalisation packages—like the €3.9 billion debt structure supporting Froneri—within optimal capital market conditions.
Still, the deal adds layers of complexity. Froneri carries significant debt, which may elevate financial risks. Credit rating agencies have flagged the company’s high leverage, particularly after PAI’s recent extraordinary dividend payout. That said, strong free cash flows and an expanded product portfolio across regions may help to manage the debt trajectory.
The wider importance goes beyond private equity. As exit markets come under strain, continuation vehicles have emerged as forceful instruments for retaining possession of high-quality assets. In a sense, Goldman’s leadership in the Froneri deal marks a milestone: the industry is accepting sophisticated structures to create value without forced exits.
Overall, Goldman Sachs’ proposed investment in Froneri at a valuation of €15 billion represents both a vote of confidence in the ice cream maker and a sign of innovation in structuring an investment. If done, the transaction would potentially catalyse additional expansion for Froneri while transforming the way private equity companies approach the life cycle of their assets. For investors and market observers alike, it is a significant development in the history of global consumer goods.
Follow for more: https://theworldfinancialforum.com
https://www.ft.com/content/39d88e04-f92a-489e-8e2e-dd313867fc6b