Froneri has signed a deal in London agreeing to acquire Israel's Noga Ice Creams, a subsidiary of Osem-Nestlé. Froneri is Europe's second largest ice cream manufacturer and the third largest in the world.
Froneri, which is entering Israel for the first time, confirmed that the current management will continue to lead the business in Israel and that it intends to invest in the local brands, products and flavors.
As part of the deal, Osem, which is fully owned by Nestle, will sell its holding in ice cream unit Noga, but parent company Nestle will retain a 50% stake in Noga because it owns half of Froneri in a joint venture with UK company R&R. Financial details about the deal were not disclosed but it is estimated at several tens of millions of euros.
Noga has 350 employees, most of them working in the company's plant in Kiryat Malachi and the others at the company's sites in Haifa, Shoham, Jerusalem, and Beer Sheva. The most prominent brands include La Cremeria, Extreme, Cookilida, Crunch and Gumigum. The company also has an exclusive distribution agreement for the Haagen Dazs ice cream brand.
Three years ago, Nestle merged its ice cream activities in Europe with the British company R&R (owned by PAI Partners) - a merger that created the jointly owned company Froneri, which specializes in ice cream. Froneri operates in over 20 countries with revenue of €2.6 billion and more than 10,000 employees worldwide. In addition to producing Nestle products, Froneri has the license to market ice cream for well-known brands including the chocolate manufacturer Mondelez, with brands such as Oreos, Milka, Toblerone and others.
Froneri CEO Ibrahim Najafi said, “We’re very excited to be building on the strengths of our existing joint venture with Nestlé. By entering Israel we’re continuing to realize our vision of becoming the world’s best ice cream company. Our consumers are at the heart of our business and we intend to invest in the local brands, products and flavours that Nestlé has been exciting the market with for over 20 years. We’re looking forward to welcoming the team into Froneri.”
Marco Settembri, CEO Zone Europe, Middle East and North Africa, Nestlé, commented: “With its continued growth and global prominence in the ice cream market, Froneri’s success speaks for itself. This milestone deal marks the final stage of the transition of our EMENA ice cream businesses into Froneri, further strengthening its presence in the region.”
Published by Globes, Israel business news - en.globes.co.il - on July 5, 2019
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