French private equity firm PAI Partners has agreed to acquire Europe's leading private-label ice cream maker R&R Ice Cream from Oaktree Capital in a deal worth EUR850m.
The acquisition is the first purchase in the food industry for PAI Partners since it acquired a stake in United Biscuits in 2006.
PAI Partners stated that the acquisition will be funded by a €253m five-year Payment-In-Kind Toggle note
Following the acquisition, R&R's senior management will continue to work for the company and PAI plans to expand the R&R Ice Cream's international business and brands.
R&R Ice Cream was formed in 2006 when Oaktree acquired Richmond Foods, Britain's ice-cream maker, and merged it with Roncadin, the leading German own-brand label ice cream manufacturer, which it had bought the year before.
R&R Ice Cream, based in North Yorkshire, has a strong presence in Europe, owning brands such as Skinny Cow, Fab and Kelly's of Cornwall. The company employs about 3,500 people across its seven factories in Europe.
R&R Ice Cream posted revenues of about €600m in 2012.
