Nestle Sells Ice Cream Business

Nestle has formally sold its ice cream business, Peters Ice Cream to Pacific Equity Partners, a private equity firm. Peters Ice Cream has about 500 employees.

The sale includes a Mulgrave factory, its Peters and Frosty Fruits brainds, and the license to sell Heaven, Skinny Cow, Milo Scoop Shake, and Drumsticks brands. According to Nestle, the company retains the employees that PEP did not hire.

The company also declined to say how the sale price went. Some reports, however, said bids for Peters Ice Cream reached about $330 million.

Last year, the brand earned about $25 million.

The decision to sell came after a review of Nestle Australia’s product portfolio. This included several food brands like Uncle Toby’s, Jenny Craig, and Maggi.

According to Nestle Australia Managing Director Graham Campbell, selling Peters was a strategic move to focus the company’s portfolio. He said the company’s brands are still playing a strong role in the food sectors.

Nestle has owned the Peters brand for 17 years.

According to Rickard Gardell, PEP is looking forward to having the Peters brand. The PEP managing director also said that he is excited to work with the Peters team.

The private equity firm has made a name from late-stage expansion capital and buyouts in New Zealand and Australia. It has a solid track record on investing in and growing companies in the consumer goods industry.

PEP also owns other food brands like Griffin’s. It also owned Frugor and Tegel Foods. It also has investments in other sectors like energy, finance, and entertainment.