Nestle S A/S (OTC: NSRGY) said Wednesday it will sell its U.S. ice cream business to Froneri, a joint venture Nestle created in 2016 with PAI Partners.
Häagen-Dazs, Drumstick Changing Hands
Froneri's assets include Nestle's European ice cream business across 20 countries and PAI Partners' R&R Ice cream business.
As part of the deal, Nestle will sell its U.S. ice cream business to Froneri in a transaction valued at $4 billion.
Froneri will now have a strong presence in the U.S. — the world's largest ice cream market.
Some of the brands included in the transaction include Häagen-Dazs, Drumstick and Outshine.
Nestle CEO Mark Schneider said in a press release that Froneri will act as its "strategic partner in ice cream," adding that Froneri's success worldwide can be replicated in the U.S.
"With this transaction, we are taking a decisive step towards our goal of achieving global leadership in ice cream."
Deal Expected To Close In Q1
The deal builds on the expertise of the world's top pure-play ice cream company, Frédéric Stévenin, partner at PAI Partners, said in a statement.
The transaction is expected to close in the first quarter of 2020. Nestle will continue running its remaining ice cream businesses across Canada, Latin America and Asia as part of its current market structure, the company said.
Nestle shares were trading 0.39% higher at $104.71 at the time of publication Wednesday.
Public domain photo via Wikimedia.