Nestle has sold its Australian ice cream business Peters to private-equity firm Pacific Equity Partners for an undisclosed sum.
The sale, which includes Nestle's Mulgrave factory, will also comprise sub-brands such as Original, Light & Creamy, Billabong, Frosty Fruits and Monaco Bar.
Reports earlier this year said bids for the business could reach in the region of A$330m (US$343.2m). In 2011, Nestle Peters booked earnings of almost A$25m.
Nestle said its decision to sell Peters Ice Cream was a result of the group wanting to focus its portfolio following a review of its range of businesses in Australia.
As part of the deal, Pacific Equity Partners will also acquire a long-term licence to market and sell in Australia certain global Nestlé ice cream brands, including Drumstick, Heaven, Maxibon, Skinny Cow and Milo Scoop Shake.
The private equity firm is understood to have a focus on buyouts and late-stage expansion capital in Australia and New Zealand. Its assets include New Zealand biscuit maker Griffin's, although that business was the subject of takeover speculation late last year.
Nestlé sells Peters Ice Cream business to Pacific Equity Partners
(29 June 2012)- Nestlé Australia Ltd announced today it has agreed to sell its Peters Ice Cream business, including its Mulgrave factory, to funds advised by Pacific Equity Partners (PEP) for an undisclosed sum.
Under the sale, PEP will acquire the iconic Peters ice cream brand, together with well known and loved sub-brands such as Original, Light & Creamy, Billabong, Frosty Fruits and Monaco Bar.
PEP will also acquire a long-term licence to market and sell in Australia certain global Nestlé ice cream brands, including Drumstick, Heaven, Maxibon, Skinny Cow and Milo Scoop Shake.
Nestlé Australia Managing Director Graham Campbell said: "We have reviewed our broad range of businesses in Australia and decided to sell Peters Ice Cream
with a view to focussing our portfolio. Our brands continue to play a strong role across a diverse range of food sectors, reflecting our long term commitment to the Australian food industry.
"This strong position of the Peters Ice Cream business is a tribute to the almost 500 people who make, distribute and sell it in Australia. We're proud to be part of the Peters Ice Cream story; it is a successful brand which continues to attract the loyalty of a nation of ice cream lovers.
"We are pleased that PEP has expressed its desire to continue to grow this iconic brand in Australia, and delighted that PEP has agreed for substantially all employees to offered employment with PEP as part of the deal. The remaining employees will be retained by Nestlé."
Pacific Equity Partners Managing Director Rickard Gardell said: "We are very much looking forward to working with the Peters team to build on their exceptional
work and grow the business further.
"For PEP, this is a great chance to apply our strong consumer products' knowledge and credentials
to support the management team and their business strategy. We are keen to invest further in
Peters' iconic and loved brands, and we are excited to include the Peters business in our portfolio."
The transaction is subject to customary closing conditions. Pacific Equity Partners (PEP) is a leading Australasian private equity firm focusing on buyouts and late stage expansion capital in Australia and New Zealand. The firm has a long track record of investing in and growing businesses, with significant experience in the consumer goods sector. Examples include SCA Hygiene Australasia (tissue and personal care products), Tegel (chickens), Griffin's (biscuits including Gingernuts and MallowPuffs) and Frucor (V energy drink). PEP currently has eight other portfolio investments spanning sectors such as finance, energy, administration services and entertainment.
Peter Ice Cream has a 105 year heritage in Australia, with brands including Drumstick, Heaven, Billabong, Maxibon and Monaco Bar as well as a range of ice cream tubs.
Nestlé is the world's leading Nutrition, Health and Wellness company. It has had a presence in Australia since the 1880s and currently employs around 4000 people across Australia. Its brands include Nescafe, Milo, Maggi, Kit Kat, Allen's, Uncle Toby's, Purina and Nespresso.
