The acquisition, for an undisclosed sum, was backed by funds advised by PAI Partners.
PEP Fund IV purchased Peters from Nestlé in 2012. Since that acquisition, Peters has undergone a significant transformation driven by investment in its core brands, substantial new product development and improvement in operating costs, under ceo Stephen Audsley. It generates annual sales of circa A$269M (£148M).
International expansion
R&R said the deal gave it a unique presence in the European and Australian markets and significant increased potential for international expansion.
R&R said it was fully committed to continuing to invest in Peters and the company’s long history of innovation. The existing Australian executive leadership team would continue to develop the Peters business locally and as a part of the broader global R&R business, it said.
“Peters is an iconic Australian business and the leader in the Australian ice cream manufacturing market; it will be an exciting complement to R&R’s European presence,” said R&R ceo Ibrahim Najafi. “We look forward to working with Stephen and his team and accelerating our growth as one combined business.”
‘Opportunities for growth’
Audsley, said: “Peters remains a proudly Australian company employing around 500 people across Australia … Manufacturing will continue at our world class facility in Mulgrave from which we intend to create new opportunities for growth.”
PEP md Tony Duthie said: “We are pleased that a company of R&R’s pedigree will help drive the future of the Peters’ business alongside the existing skilled and committed Australian management team.”
The deal follows R&R’s purchase of Fredericks Dairies for £49M in April last year.
Founded in 1985, R&R is the largest own-label ice cream manufacturer in Europe and the second largest ice cream manufacturer overall in Europe.
Its strong branded portfolio includes the Mondelēz and Nestlé brands, including Cadbury Dairy Milk, Oreo, Milka, Smarties and Kit-Kat, plus brands such as Disney, YooMoo frozen yogurt and Kelly’s of Cornwall. It chalked up revenues for the year ending December 31 2013 of A$968M (£531.4M).
Financial adviser to PEP was Morgan Stanley, Allens provided legal advice and PwC provided accounting and tax advice. Financial advisers to R&R were Rothschild, Allen & Overy provided legal advice and KPMG provided accounting and tax advice.