Blackstone and CD&R are reportedly interested in acquiring The Magnum Ice Cream Company, which was recently spun-off by Unilever but is still part-owned by the FMCG giant.
TMICC was only listed in London, Amsterdam and New York late last year following the separation from Unilever but sources for Reuters have suggested investors Blackstone and CD&R are eyeing putting in a bid for the ice-cream business.
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Those sources ‘familiar with the matter’ said the pair of private-equity firms are in the ‘early stages of exploring bids’ for TMICC but are first monitoring the company’s share-price performance, according to Reuters reporting today (15 May).
One source suggested TMICC’s ice-cream sales over the summer period are another factor under consideration.
Blackstone, CD&R and TMICC all declined to comment when contacted by Just Food.
TMICC’s shares were up on the day in London, trading at 1,260 pence as of 13:20 BST, marking an increase of almost 12%. They have climbed 8.6% so far this year.
Unilever still owns 19.9% of the branded ice-cream business but has previously said it will wind down that share gradually over five years.
TMICC reported its first-quarter results in April. Under the leadership of CEO Peter ter Kulve organic volumes grew 2.9% versus 1.4% in the year-earlier quarter.
“Our operational rigour is improving,” ter Kulve told analysts last month as he discussed the numbers. “I’m especially pleased with the volume contribution – this represents the kind of quality growth we aim for and reflects the work that we have done on innovation and execution.
“We are seeing this working across the business with every region contributing to our growth.”
Despite the disruption from the Middle East on energy prices and supply chains, TMICC stuck with its full-year guidance of organic sales growth of 3-5% even though that metric delivered 4.5% in the first quarter to €1.77bn ($2.07bn).
Following the Unilever spin-off, TMICC became the world’s largest standalone ice-cream manufacturer and by its own submission in December said it commands a 21% global market share, almost double the 11% of its nearest rival, investor-backed Froneri.
Unlike UK-headquartered branded and private-label focused Froneri, in which Nestlé holds a 50% interest in a partnership with PAI Partners dating back to 2016, TMICC is solely focused on branded ice cream with well known names such as Wall’s, Cornetto and Ben & Jerry’s.
