PAI Partners announced the successful completion of a €3.6 billion equity transaction and the creation of a new ownership structure for its approximately 50% stake in Froneri, a global leader in the ice cream industry.

As part of the new structure, a wholly-owned subsidiary of Adia, the Abu Dhabi Investment Authority, will become a significant minority co-investor in Froneri, alongside PAI and a new single-asset continuation vehicle. The transaction, led by Vintage Strategies of Goldman Sachs Alternatives, represents one of the largest single-asset continuation vehicle transactions in Europe to date.

According to the official press release, the continuation vehicle was oversubscribed, reflecting strong demand from existing and new investors and confidence in Froneri's long-term growth prospects. "This," the statement explains, "follows the company's successful debt financing earlier this year, further strengthening its balance sheet and supporting its future expansion."

"Froneri is a clear example of PAI's ability to create and grow global champions in the consumer goods sector," explains Frédéric Stévenin , Co-Managing Partner of PAI Partners. "Since our first partnership with Nestlé in 2016, the company has successfully expanded into new markets, strengthened its brand portfolio, and established itself as a global leader. This success is also a testament to the strength and commitment of Froneri's management team. We are proud to continue our journey with Froneri and Nestlé and to welcome ADIA and other leading global institutions as shareholders for Froneri's next phase of growth."

"Froneri," added CEO Phil Griffin , "has grown to become one of the world's leading ice cream companies since its founding in 2016. The renewed commitment of our partners, combined with the addition of new investors and capital, reflects the confidence in our business and strengthens the strong partnership that has underpinned our growth. We look forward to building on this momentum in the years to come."

Froneri was formed in 2016 from a 50/50 joint venture to combine PAI's R&R Ice Cream with Nestlé's European ice cream operations. Since then, it has transformed from a predominantly European private label manufacturer into a global brand-led company with revenues of €5.5 billion.

Today, the company, the statement highlights, is a leader in each of its core markets, combining a portfolio of iconic ice cream brands with strong innovation capabilities and operational expertise. It also holds leading positions in the rapidly growing snack and premium segments, supported by trusted brand partnerships and a well-invested supply chain.

Looking ahead, Froneri "has the opportunity to further build on this performance by leveraging its proven ability to create value, focusing on robust organic growth, operational efficiency and strategic market consolidation."

According to Hamad Shahwan Aldhaheri , Executive Director of ADIA's Private Equities Department, "Froneri is a leading global consumer goods company with strong future prospects. This transaction offers an exciting opportunity to support the company in its next phase of growth alongside experienced and proven partners."

"We are thrilled to continue our journey with Froneri and our partnership with PAI as the lead investor in the new continuation vehicle," concluded Gabriel Mollerberg , managing director of Goldman Sachs Alternatives. "Froneri's market positioning, attractive financials, exceptional operational execution, and strong alignment with all key shareholders have made it a strong candidate for the continuation vehicle. We look forward to embarking on this next chapter alongside PAI and management."