PAI Partners buys R&R Ice Cream

PARIS-BASED private equity firm PAI Partners has acquired R&R Ice Cream, Europe’s largest own-label ice cream manufacturer.

The North Yorkshire-headquartered business has been bought by PAI partners for an undisclosed sum from funds managed by Oaktree Capital Management and the other shareholders of R&R. The transaction is subject to certain regulatory approvals and financing conditions. R&R’s senior management team will continue to lead the business.

PAI Partners said it will support R&R “through its next phase of growth, investing in the expansion of the company’s international footprint and renowned consumer brands”.

Hide Ad
Hide Ad

James Lambert, CEO and executive chairman at 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.

“We have benefited immensely from working with Oaktree and I would like to thank them for their support.”

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.”

Jim Van Steenkiste, managing director at Oaktree, said: “Our partnership with R&R has been very successful. We are delighted to have supported the company in achieving significant growth since our investment in 2006 and an enhanced market position. The company today is a leader in its sector and is well-positioned for future growth.”

Hide Ad
Hide Ad

Founded in 1985, R&R makes own-label and branded products, including Nestlé, Skinny Cow, YooMoo frozen yoghurt, Kelly’s of Cornwall and Disney. Most recently, R&R launched a range of Mondelez International brands including Milka, Toblerone, Daim, Oreo and Philadelphia across 10 European countries.

Oaktree managed funds acquired Richmond Foods Plc in 2006 and subsequently merged it with German ice cream firm Roncadin to form R&R. 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.

Today, the company has 11 production sites across the UK and mainland Europe. Revenues for the year ending December 31, 2012, were approximately 600 million euros.

Barclays acted as sole financial advisor to Oaktree. Rothschild and Credit Suisse advised PAI Partners.

Related topics: