Grupo Herdez has agreed to hand over operational control of its Nestl\u00e9-licenced ice-cream business in Mexico to Froneri.<\/p>\n
In a statement yesterday (13 April), the Mexico-based food group said the ice-cream operation will be integrated into a new partnership, with each company holding a 50% stake.<\/p>\n
Herdez has operated the ice-cream business under an exclusive licence from Nestl\u00e9 since 2015.<\/p>\n
In a separate statement, Froneri, a joint venture between Nestl\u00e9 and private-equity firm PAI Partners, confirmed the transaction.<\/p>\n
As part of the agreement, Froneri will support the venture through a “capital contribution”, which it said, is intended to \u201cstrengthen the financial structure of the business\u201d and support its growth. The company will also have \u201cfull operational control\u201d.<\/p>\n
However, Froneri added the deal “does not represent a cash inflow for Grupo Herdez”.<\/p>\n
Froneri CEO Phil Griffin said: \u201cThe business operates under a portfolio of much-loved brands which we plan to invest in to further develop the business. We look forward to working with the Grupo Herdez team.\u201d<\/p>\n
After completion, Grupo Herdez will no longer consolidate the unit\u2019s results in its financial statements and will instead recognise its share as \u201cequity investments in associated companies\u201d.<\/p>\n
H\u00e9ctor Hern\u00e1ndez-Pons Torres, the chairman and CEO of Grupo Herdez, said: “This alliance marks the next step in the configuration of our portfolio, and we are proud to share the potential of this business with a global expert like Froneri. The focus of this alliance will remain on long-term value creation.”<\/p>\n