Sweet deal for R&R as they sign £2.2bn joint venture

PRIVATE label ice cream manufacturers R&R Ice Cream are in talks with Nestlé to set up a joint venture across Europe and Africa.

R&R, which is owned by funds controlled by French private equity firm PAI Partners announced that it was in discussions which will combine Nestlé’s brands and exporting knowledge with R&R’s manufacturing model and retail presence.

Each partner will own an equal share of the new joint venture which will operate in more than 20 countries and employ more than 10,000 people.

R&R chief executive Ibrahim Najafi commented: “We are pleased to be in talks with Nestlé and building on our 14 year history working together.

“We are excited about combining the respective talents of R&R and Nestlé’s people to drive further growth in this category.

“The vision of the proposed joint venture is to grow a unique consumer and customer focused ice cream business serving all channels, delivering innovative, high quality ice cream through investment in people, process and products.

“The ambition of the proposed joint venture will be to sell more ice cream through meeting and exceeding customer and consumer needs.”

R&R will join the proposed joint venture in its entirety, whilst Nestlé will contribute its ice cream businesses in Europe, Egypt, the Philippines, Brazil and Argentina.

Subject to regulatory approval and consultations, the arrangements will be implemented in the course of 2016.

It is intended that the new proposed joint venture will be led by Luis Cantarell, current Nestlé executive vice president Europe, Middle East and North Africa, as chairman and Ibrahim Najafi as CEO.

R&R Ice Cream is based in Leeming Bar and was founded by Yorkshire entrepreneur James Lambert. It manufactures ice cream for brands such as Cadbury Flake Cones, Rowntree’s Fruit Pastille lollies and Kelly’s Cornish ice cream.

Mr Lambert retired from the business in July last year.