R&R Ice Cream could be up for sale

By Mike Stones

- Last updated on GMT

Related tags Ice cream

Is R&R Ice Cream up for grabs?
Is R&R Ice Cream up for grabs?
Europe’s largest own-label ice cream manufacturer, R&R Ice Cream and its majority owner Oaktree Capital Management have both refused to confirm or deny press reports that the business is for sale.

US private-equity firm Oaktree Capital Management was said to have asked Barclays Capital to explore the level of interest in the firm, according to a report published in The Wall Street Journal​ on March 12.

But a spokeswoman for the capital management firm told FoodManufacture.co.uk: “Oaktree does not comment publicly on its activities.”​ A spokesman from R&R also refused to comment.

Private equity

The business, which is expected to attract interest from other private-equity firms, could sell for $1bn, according to The Wall Street Journal​ report.

The ice cream firm was formed in 2006 when Oaktree combined UK ice cream maker Richmond Foods and German firm Roncadin.

Last month, James Lambert, ceo and executive chairman of R&R Ice Cream, told FoodManufacture.co.uk that the firm was looking to acquire more European businesses this year after buying several last year. "We are looking for a business in Italy and two businesses in Poland are for sale,”​ he said.

In December 2011, R&R acquired German ice cream manufacturer Durigon Gelato for and undisclosed sum.

Compete with Unilever

The German firm added about 50M litres of capacity to R&R, bringing its total to near 1bn litres.

Speaking at the time, Lambert said the acquisition would allow R&R to consolidate its position as the second largest player in the European ice cream market and allow it to better compete with market leader, Unilever.

“Ice cream manufacturers can only compete with Unilever if they are on a big scale,”​ he said.

Also in December 2011, R&R forged a deal with Kraft Foods to market a range of premium ice cream products including the Toblerone and Milka brands.

Earlier in the year, R&R acquired Pilpa, the ice cream division of French firm Maison Boncolac for about €17.65M plus stock options valued at a further €9M.

R&R makes own-label ice cream for European retailers and has licensing deals with Nestlé and Kraft Foods.

The Los Angeles-based Oaktree manages assets valued at $74.9bn.

Related topics Dairy Dairy-based ingredients

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