Blackstone and CD&R are reportedly exploring bids for The Magnum Ice Cream Company, according to sources cited by Reuters, with both firms currently in "early stages of exploring bids" for the ice-cream business. The company was spun off by Unilever late last year and remains 19.9% owned by the British multinational.
Both private-equity firms declined to comment on the report. The sources monitoring the situation indicated that Blackstone and CD&R are tracking TMICC's share-price performance and ice-cream sales over the summer period before deciding whether to bid.
Magnum shares moved sharply on the news. TMICC's London-listed shares were up almost 12% on the day, trading at 1,260 pence as of 13:20 BST, and have climbed 8.6% so far this year.
Ice-cream market position
TMICC became the world's largest standalone ice-cream manufacturer following its separation from Unilever. The company commands a 21% global market share, almost double the 11% of its nearest rival, Froneri, according to its own December submission. Unlike Froneri, which is owned by Nestlé and PAI Partners and focuses on both branded and private-label ice cream, TMICC is solely focused on branded ice cream with well-known names such as Wall's, Cornetto and Ben & Jerry's.
Recent performance
TMICC reported strong first-quarter results in April. Under CEO Peter ter Kulve, organic volumes grew 2.9% versus 1.4% in the year-earlier quarter. The company delivered 4.5% organic sales growth in the first quarter to €1.77bn ($2.07bn) despite disruption from Middle East energy prices and supply-chain pressures.
TMICC has stuck with its full-year guidance of organic sales growth of 3 to 5%, signalling confidence in its operational trajectory as it remains independently listed in London, Amsterdam and New York.
Unilever's exit plan
Unilever continues to gradually wind down its remaining stake. The company owns 19.9% of the branded ice-cream business and has previously said it will reduce that share gradually over five years.
The private-equity interest in Magnum reflects broader activity in Big Food, where major corporations have faced investor and activist pressure to break up and refocus operations. Unilever announced plans to merge its Foods business with McCormick & Company in a deal worth over $40bn, though the move has triggered shareholder backlash and major investor exits. Kraft Heinz announced plans to split into two separate entities, a move that is currently on hold. This backdrop suggests private equity may view standalone ice-cream operations as an attractive acquisition target, especially one with Magnum's market position and recent growth trajectory.