Nestlé and private equity firm PAI Partners have agreed to set up a joint venture for Nestlé’s frozen pizza business in Europe. Nestlé will retain a non-controlling stake with equal voting rights alongside PAI Partner.
Nestl’s existing pizza business spans several countries across Europe with an annual turnover of CHF 400 million (US$449 million). Pizzas are currently distributed under the Wagner, Buitoni and Garden GOurmet brands including in Germany, Italy, France, Spain and others.
The business will be headquartered in Germany and led by an experienced management team. It will operate two manufacturing facilities in Nonnweiler, Germany and Benevento, Italy.
“We took a thorough look at our European pizza business and concluded that partnering with PAI provides the best platform to develop its full potential,” said Marco Settembri, Vice President, Chief Executive Officer Zone Europe at Nestlé. “Nestlé will remain invested in this business and participate in future growth and value creation as the joint venture continues to provide the very best pizza for consumers and retail partners.”
“This transaction is testimony to our relationship with Nestlé and brings together Nestlé’s iconic brands with PAI’s depth of expertise in creating leaders in Food & Consumer. We are delighted to once again partner with Nestlé to replicate our previous success,” added Frédéric Stévenin, Managing Partner at PAI Partners.
This partnership follows the creation of ice cream brand Froneri in 2016, a joint venture with PAI Partners. The proposed partnership will only cover the company’s frozen pizza business in Europe, its business in the US is not part of the scope.
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