UK-based R&R Ice Cream plc, backed by PAI Partners, is acquiring Nestle South Africa’s ice cream business. Terms of the deal have not been disclosed.
The deal is the second R&R-Nestle deal within the last 12 months, following R&R’s acquisition of Nestle’s Peters Food Group in Australia in May 2014. South Africa’s ice cream sector continues to post a healthy grow profile and was worth approximately $170 million in 2013. The acquisition of the South African business brings a 9-production line manufacturing facility in Clayville, Johannesburg and approximately 200 employees under the R&R umbrella, as well as a number of well-established, traditional brands.
As the african consumer becomes more affluent, the consumption of ice-cream is expected to increase, providing R&R with a significant long-term growth opportunity. With a network of 14 distributors in South Africa and across the sub-Saharan region, the acquisition provides R&R, now the world’s third-largest ice cream manufacturer with revenues in excess of $1 billion with a springboard to grow sales across the continent.
The deal is subject to approval by South Africa’s Competition Commission.