R&R Ice Cream (R&R) has bought Nestlé South Africa’s ice cream business, following the firm’s acquisition of Peters Food Group (Peters) in Australia in May 2014.
The terms of the deal, which are not disclosed, are subject to the approval of the South African Competition Commission.
R&R is the third largest ice cream manufacturer in the world, producing an attractive portfolio of branded and private label products with annual sales approaching €1 billion (US$1.08 billion).
Nestlé South Africa’s ice cream business consists of traditional names such as Dairymaid, Country Fresh, Eskimo Pie, King Cone, Rolo and KitKat.
The business has a modern manufacturing facility with nine production lines at Clayville, Johannesburg and approximately 200 full time employees.
It owns 22,000 freezers and operates through a network of 14 distributors in South Africa and across the sub-Saharan region.
The South African ice cream sector has enjoyed good historic growth which is forecast to continue.
It was worth approximately R2.1 billion (US$172.9 million) in 2013, split approximately 50/50 between impulse and take home.
Nestlé Ice Cream’s existing South African management team will continue to drive the business locally and contribute to R&R’s broader global strategy.