Nestlé and private equity firm PAI Partners have agreed to set up a joint venture for the Swiss food manufacturer’s frozen pizza business in Europe.
Nestlé’s pizza business spans several countries across Europe, with an annual turnover of around CHF400m (£361m). The pizzas are currently distributed under the Wagner, Buitoni and Garden Gourmet brands, including in Germany, Italy, France, Spain, Switzerland, Portugal, Austria, Belgium and The Netherlands.
The joint venture mirrors the creation of Froneri in 2016, which saw Nestlé and PAI Partners create a global leader in ice cream.
The new pizza business will be headquartered in Germany and operate from two manufacturing facilities, in Nonnweiler, Germany, and Benevento, Italy. Nestlé will retain a non-controlling stake with equal voting rights alongside PAI Partners.
Marco Settembri, Chief Executive Officer Zone Europe at Nestlé, said: “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. 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.”
Frédéric Stévenin, a Managing Partner at PAI Partners, added: “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.”
The transaction is subject to regulatory authorities and is expected to close in the second half of this year. Financial details were not disclosed.
Nestlé’s pizza business in the US is not part of the proposed partnership.
