FDBusiness.com

Froneri, the UK-based international ice cream group, has agreed to acquire the iconic New Zealand ice cream business Tip Top from global dairy co-operative Fonterra with completion expected by the end of May. The deal is worth NZ$380 million (US$250.2 million).

Created in 2016 as a joint-venture between PAI Partners and Nestlé, Froneri is the second largest manufacturer of ice cream in Europe, the third largest worldwide and the number one private label producer globally. Employing over 10,000 people and with annual revenues of €2.5 billion, Froneri is present in over 20 countries.

Ibrahim Najafi, chief executive of Froneri.

Commenting on the deal, Ibrahim Najafi, chief executive of Froneri, explains: “We have always admired Tip Top, which is an iconic brand in New Zealand with a long proud history and we are looking forward to welcoming the team into Froneri. Our vision is to build the world’s best ice cream company; an important part of our strategy is to develop local market successes and roll them out across our other markets.”

The Tip Top name and its operations, including the Auckland-based factory site at Mount Wellington will be maintained.

Ibrahim Najafi adds: “Our consumers are at the heart of our business and we intend to invest in the Tip Top brands, products and manufacturing facility to ensure we continue to excite the market and New Zealanders with delicious high-quality ice cream made from fresh New Zealand milk and cream.”

Froneri has confirmed that the Tip Top business will continue to be led by the existing management team.

Kim Ballinger, managing director of Tip Top, comments: “As part of the Froneri family we will benefit from Froneri’s scale and expertise, while continuing to maintain our commitment to our local heritage and our many loyal consumers in New Zealand and the wider Asia Pacific region.  We’re all very excited about what the future holds.”

Leading brands include Tip Top, Kāpiti, Trumpet and Popsicle.