16 Jun 2013
PAI Partners ("PAI"), a leading European private equity firm, today announced the completion of its acquisition of R&R Ice Cream from Oaktree Capital Management L.P., which was previously announced on 29th April. Since that announcement, R&R has also acquired Fredericks Dairies Limited's ice cream business in the UK.
Founded in 1985, R&R is headquartered in North Yorkshire and is Europe’s leading supplier of own-label ice cream with a strong branded portfolio including Nestlé, Skinny Cow, YooMoo frozen yoghurt, Kelly’s of Cornwall and Disney. The Fredericks acquisition will further enhance the company’s branded offering with the addition of brands such as Cadbury, Del Monte and Vimto.
Both acquisitions were approved by regulatory authorities and gained full consent from existing bondholders. As part of the acquisition, R&R successfully raised €253 million five-year Senior PIK Toggle Notes alongside €350 million existing Senior Secured Notes.
PAI will support R&R through its next phase of growth, investing in the expansion of the company’s international footprint and renowned consumer brands.
Additionally R&R has announced an organisational change, with current Chairman and CEO, James Lambert OBE becoming Chairman and Ibrahim Najafi promoted to Group CEO. Speaking of the promotion, James Lambert OBE said: “Ibrahim is one of the best managers in the food industry today and his skill, dedication and hard work have played a major part in R&R’s success to date. I could not be happier that I have such an able successor to continue to grow and lead such a fantastic and successful company”.
Ibrahim Najafi joined the company in 1998 and was appointed to the Board in 2000. In 2009 he was promoted to CEO Europe and has since been responsible for the growth of the business in Germany Poland, France and Italy.
The consumer sector is one of PAI’s core target areas for investment, having successfully invested in leading food and consumer businesses including: Yoplait, one of the top 20 global consumer brands; United Biscuits, the largest biscuits manufacturer in the UK; and Chr. Hansen, a leading food ingredients supplier.