The transaction is subject to regulatory approval and financing conditions. R&R’s senior management team will continue to lead the business and are investing in the company.
R&R supplies own-label ice cream across Europe. It also manufactures Nestlé’s ice cream brands, Skinny Cow, YooMoo frozen yogurt, Kelly’s of Cornwall and Disney.
James Lambert, ceo and executive chairman of R&R Ice Cream, said: “We are very excited to be partnering with PAI and working together on our next phase of development as we continue with our growth strategy across our brands.”
Colm O’Sullivan, Partner at PAI Partners, said: “R&R is a market-leading company with a strong portfolio of innovative products and excellent potential to expand in the UK and internationally. The food and consumer brands sector is a core area of investment focus and expertise for PAI and we are delighted to be investing in R&R. We look forward to working closely with the company’s management and supporting the company’s continued growth.”
Expansion of the firm’s international footprint
PAI Partners will support R&R through its next phase of growth, investing in the expansion of the firm’s international footprint and renowned consumer brands.
The consumer sector is one of PAI’s core target areas for investment, having successfully invested in food and consumer businesses such as: Yoplait, United Biscuits and Chr Hansen.
R&R recently launched a range of Mondelēz International brands including Milka, Toblerone, Daim and Oreo across 10 European countries.
Since 2006, R&R has acquired a number of ice cream businesses including Rolland and Pilpa in France, Durigon in Germany and Eskigel, Italy’s largest own-label ice cream manufacturer.
The company has 11 production sites across the UK and mainland Europe. Revenues for the year ending December 31 2012 were approximately €600M.
Fredericks Dairies for £49M
Earlier this month, R&R acquired ice cream manufacturer Fredericks Dairies for £49M, subject to competition clearance. Fredericks has the licence to manufacture ice cream and iced refreshment brands such as Cadbury, Barratt’s, Britvic, Del Monte, Vimto and has already launched new products under Mondelēz’s Oreo brand.
R&R ice cream timeline
1985 – Farmer Jonathan Ropner acquires local ice cream manufacturer Cardosi and Richmond Ice Cream is founded.
1995 – Richmond acquires Windsor Creameries.
1998 – The business merges with Leeds-based ice lolly manufacturer Treats Group.
2000 – Richmond acquires soft scoop competitor Allied Frozen Foods in the UK and Dr Oetker Ice Creams in Germany.
2001 – The acquisition of Nestlé UK’s Ice Cream business brings brands such as Fab, Mr Men, Smarties, Rolo and Rowntrees Fruit Pastilles on board.
2006 – Richmond merges with German ice cream manufacturer Roncadin to form R&R Ice Cream, now Europe’s largest ice cream manufacturer.
2008 – 70% of Kelly’s of Cornwall is added to the portfolio
2010 – France’s third largest ice cream manufacturer Rolland is added to the portfolio, making R&R Ice Cream.
2011 – R&R announces a licensing agreement with Mondelēz International to manufacture and distribute an ice cream range of Mondelēz International (formerly Kraft Foods) brands including Milka, Toblerone, Daim and Oreo in 10 countries across mainland Europe.