R&R Ice Cream, the third-largest ice-cream manufacturer in the world, has bought Nestlé South Africa’s ice-cream business for an undisclosed price.
The deal is designed to cement R&R’s growing position as a global player in the sector following its acquisition of Peters Food Group in Australia last May.
R&R, owned by funds managed or advised by PAI Partners SAS, has branded and private label product with annual sales of nearly €1bn (£709m). Nestlé South Africa’s ice-cream business includes Dairymaid, Country Fresh, Eskimo Pie, King Cone, Rolo and KitKat.
The South African ice cream sector has enjoyed good historic growth which is forecast to continue. It was worth about R2.1 billion (£115m) in 2013, split equally between impulse and take home.
Ibrahim Najafi, chief executive of R&R, said: “This acquisition is a major milestone towards our goal of becoming a leading global player in ice cream.
“As a business we have enjoyed a successful partnership with Nestlé for nearly 15 years in the UK. This relationship was extended with the acquisition of Peters in Australia, also a former Nestlé business, and now we are looking forward to working together in South Africa.“
Colm O’Sullivan, partner at PAI Partners, said: “R&R continues to go from strength to strength and we are very pleased with its development under our ownership, over the last two years.
“The African ice cream market represents an attractive long term growth opportunity for R&R and we look forward to working with Nestlé Ice Cream’s team in South Africa.”
The terms of the deal are subject to the approval of the South African Competition Commission.
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