FDBusiness.com

R&R Ice Cream, Europe’s leading supplier of own-label ice cream, is acquiring Peters Food Group, one of Australia’s oldest consumer businesses, from Pacific Equity Partners (PEP). The terms of the deal are not disclosed.

Under the agreement, R&R will acquire Peters, with its portfolio of household name ice creams including Drumstick, Connoisseur, Peters Original and Maxibon. PEP purchased Peters from Nestlé in 2012. Since the acquisition, Peters has undergone a significant transformation driven by investment in its core brands, substantial new product development and improvement in operating costs. It generates annual sales of about A$269 million (€190 million).

In addition to its own label business, R&R has a strong branded portfolio incorportating the Mondelez and Nestlé brands (including Cadbury Dairy Milk, Oreo, Milka, Smarties and Kit-Kat) as well as brands such as Disney, YooMoo frozen yogurt and Kelly’s of Cornwall. Revenues for the year ending 31 December 2013 were approximately €681 million. R&R operates nine production sites across the UK and mainland Europe.

R&R is fully committed to continuing to invest in Peters and the Company’s long history of innovation. The existing Australian executive leadership team will continue to develop the Peters business locally and as a part of the broader global R&R business.

By combining the two companies, R&R is further establishing its position as a world leader in the ice cream manufacturing market with a unique presence both in the European and Australian markets and significant increased potential for international expansion.

Ibrahim Najafi, chief executive of R&R, says: “We are delighted to have come to an agreement with Peters and PEP. Peters is an iconic Australian business and the leader in the Australian ice cream manufacturing market; it will be an exciting complement to R&R’s European presence.”