Nestle SA has agreed on selling its U.S. ice cream business unit to Froneri in an agreement worth $4 billion, shifting management of manufacturers together with Häagen-Dazs to a joint partnership the Swiss group set up in 2016.
Froneri was created after Nestle merged its European ice cream business in 20 nations with R&R, a unit of French private equity agency PAI Companions.
With operations in areas including Latin America and Asia, it is one of the biggest ice cream companies on the earth with a turnover of around 2.9 billion Swiss francs ($2.91 billion) as of 2018.
Wednesday’s agreement expands Froneri’s reach to the U.S. and is anticipated to add $1.8 billion to annual sales.
Nestle holds the rights to Häagen-Dazs in the U.S., while Yoplait maker General Mills sells the premium brand in non-U.S. markets.
Since assuming reins at Nestle in 2016, Schneider has embarked on a strategy that focuses on selling premium products in excessive growth classes, along with baby food and coffee, while offloading underperforming companies.
Earlier this year, the Swiss firm put its Herta cold cuts and meat-based products business on the block and sold its skin health enterprise to a consortium led by EQT Partners for 10.2 billion Swiss francs.
The contract will close in the first quarter of 2020 following regulatory permissions, Nestle said.
The maker of Nescafe coffee and KitKat chocolates will proceed to run its remaining ice cream subsidies in Canada, Latin America, and Asia.