UK-based ice cream manufacturer Froneri has entered agreements to acquire Food Union's European ice-cream business.

Financial details were not disclosed.

According to a joint statement published by Food Union today (15 October), the sale is expected to close in the “coming months”.

The proposed transaction covers all Food Union's business in markets such as Norway, Denmark, Lithuania and Romania.

The deal also includes Latvia but Food Union's dairy business in the market is excluded from the transaction and ownership will remain the same, the statement said.

Food Union owns several ice cream brands, including Premia in the Baltics, Jocker in Lithuania and Isbjørn Is in Norway.

For Froneri, the acquisition is expected to help it "create new growth opportunities as well as an opportunity to build on the commitment to providing high-quality ice cream to all consumers".

The group's ice cream portfolio include brands like Nuii and Häagen-Dazs.

Commenting on the deal, Froneri CEO Phil Griffin said: “Food Union has built a portfolio of locally loved brands which we plan to invest in to further develop the significant potential of the business.

"We look forward to welcoming the Food Union team to Froneri to support our ambition to be the world’s best ice cream company.”

Food Union executive chairman Soren Lauridsen added: “Froneri is the global benchmark in ice cream, and we’re delighted that our people and brands have found a perfect home with a truly world-class leader.

"Under Froneri’s stewardship, these brands will gain broader reach and the strengths of a global portfolio and capabilities, while preserving the local character and quality consumers love. We look forward to building the next chapter together.”

Earlier this month, PAI Partners restructured its shareholding in Froneri with a minority investment from the Abu Dhabi Investment Authority (ADIA).

The London-headquartered private-equity firm bought a 50% interest in Froneri in 2016 through a joint venture with Nestlé, when the food giant merged its European ice-cream operations with UK-based R&R Ice Cream, owned by PAI Partners.

ADIA, which invests on behalf of the Abu Dhabi government, acquired a minority, undisclosed portion of PAI Partners’ 50% share via a wholly-owned subsidiary as a co-investor with the private-equity firm.

Meanwhile, Goldman Sachs, via Vintage Strategies at Goldman Sachs Alternatives, was to reinvest in Froneri through a so-called single-asset continuation vehicle (CV).