Nestlé and PAI Partners have agreed to form a joint venture dedicated to Nestlé’s frozen pizza business in Europe, aiming to create a focused player in a dynamic and fiercely competitive market. Nestlé will retain a non-controlling stake with equal voting rights alongside PAI Partners. The proposed transaction is subject to regulatory authority approval and employee consultations and is anticipated to close by the second half of 2023. No financial details have been disclosed.
Nestlé’s frozen pizza business operates across several European countries and generates an annual revenue of roughly CHF 400 million. The business distributes pizzas under the brands Wagner, Buitoni, and Garden Gourmet in countries such as Germany, Italy, France, Spain, Switzerland, Portugal, Austria, Belgium, and the Netherlands. The joint venture will be based in Germany and managed by an accomplished and seasoned team. It will operate two production sites located in Nonnweiler, Germany, and Benevento, Italy.
Marco Settembri, Executive Vice President, 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, Managing Partner at PAI Partners, said, “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.”
After the prosperous establishment of Froneri in 2016, a joint venture with PAI Partners, Nestlé and PAI Partners have formed another partnership. Froneri, which now leads the global ice cream market with iconic brands and top-notch category expertise, served as the inspiration for this new collaboration.
The proposed partnership will exclusively cover Nestlé’s frozen pizza business in Europe, while the company’s dominant pizza business in the United States will remain a crucial component of Nestlé’s frozen food operations in the region and will not be included in the collaboration.
