R&R Ice Cream has announced the acquisition of Nestlé’s ice cream business in South Africa for an undisclosed amount.
The acquisition includes a manufacturing facility with nine production lines in Johannesburg; a network of 14 distributors across the region; 22,000 freezers; and the rights to brands such as Dairymaid, Eskimo Pie, Rolo and KitKat.
The agreement was revealed less than a week after Nestlé sold its ice cream business in Mexico – including a production facility and long-term distribution rights – to Grupo Herdez for $64.7m. The UK-based manufacturer is seeking to enhance its position in the global ice cream market through the €160m South African ice cream sector, after acquiring Australian food group Peters in May 2014.
R&R Ice Cream CEO Ibrahim Najafi said: “This acquisition is a major milestone towards our goal of becoming a leading global player in ice cream. As a business we have enjoyed a successful partnership with Nestlé for nearly 15 years in the UK. This relationship was extended with the acquisition of Peters in Australia, also a former Nestlé business, and now we are looking forward to working together in South Africa.
“We also believe that African ice cream consumption will continue to increase as consumers become more affluent and we see this acquisition as a springboard to grow sales across much of the African continent.”
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