UK-based private-label ice cream maker R&R Ice Cream has acquired Italian ice cream manufacturer Eskigel.
The acquisition, for around EUR77m (US$94.5m), will give R&R an "immediate and major" presence in Europe's largest ice cream market, the company said.
Own-label ice cream manufacturer Eskigel recorded net sales of EUR81m in 2011. It operates from a facility in Terni, north of Rome and its product range includes ice cream sticks, ice lollies, cones, tubs and ice cream sandwiches.
Earlier this year, R&R Ice Cream was reportedly set to be put up for sale by majority owner US private-equity firm Oaktree Capital Management. Oaktree formed R&R in 2006 when it acquired UK ice cream maker Richmond Foods and combined it with French asset Rocadin.
The company also makes own-label ice cream for retailers across Europe and has licensing deals with the likes of Nestle and Kraft Foods.
R&R, however, has not commented publicly on the speculation.
R&R Ice Cream plc ("R&R") is pleased to announce that it has acquired Eskigel S.r.l. ("Eskigel") for approximately €77 million.
Founded in 1952, Eskigel is the leading own label ice cream manufacturer in Italy and achieved net sales of €81 million in the year to 31st December 2011. Operating from a modern and flexible factory at Terni, north of Rome, Eskigel's product range includes ice cream sticks, ice lollies, cones, mini-cups, tubs and ice cream sandwiches.
"This acquisition fully utilises the bond issued in November 2010 giving R&R an immediate and major presence in Europe's largest ice cream market," said James Lambert, CEO of R&R. "Eskigel has been instrumental in growing the own label ice cream sector in Italy and we intend to build on this strong position ensuring continuity to the business and to customers' relationships. I am delighted that Stefania de Santis and Giuseppe Listanti have agreed to continue to manage the business as Chairman and Chief Executive of Eskigel, together with the existing management team, and we look forward to a long and successful partnership."
