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Investing.com-- Goldman Sachs (NYSE:GS) is set to invest in Häagen-Dazs maker Froneri in a deal that values the ice cream group at about €15 billion, backing a continuation vehicle led by French private equity firm PAI Partners, the Financial Times reported on Friday, citing people familiar with the matter.
Froneri, a joint venture between PAI and Swiss food group Nestle (SIX:NESN), owns brands including Häagen-Dazs in the U.S. as well as Oreo and Cadbury ice creams.
According to the FT report, Goldman’s asset management arm will become the lead investor in a continuation vehicle being established by PAI. The deal, which includes debt, could be signed as soon as September and would allow PAI to retain its stake in Froneri.
Continuation funds enable buyout firms to extend ownership of portfolio companies beyond the typical fund life. The Froneri deal marks the second such move by PAI, after transferring part of its 50% stake into a continuation vehicle in 2019. Nestlé will retain its 50% holding, the report added.
Founded in 2016, Froneri ranks as the world’s second-largest ice cream producer after Unilever’s Magnum spin-off.