Italian ice-cream manufacturer Gelato d’Italia sold to capital management firms

ITALY – Gelato d’Italia – Indian S.r.l, a renowned private-label ice cream producer, is set to be acquired by New York-based Davidson Kempner Capital Management, and Turkey-based Afendis Capital Management, for an undisclosed sum.

The deal in which the undersigned terms are yet to be revealed is expected to close “as soon as practicable”.

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The sellers are Milan-based private-equity firm IDeA Capital, the Olivi family group who are founders of Gelato d’Italia, and the ice-cream maker’s CEO Marco Pellegrino.

The IDeA Taste of Italy bought 68.6 % of Indian’s capital from the Olivi family in May 2016 based on a valuation of 41.5 million euros, including a senior debt of 15 million and a vendor loan of 5 million, which is 7.5 times the EBITDA of 2015.

The Olivi family had kept 30% while 1.4% had been acquired by Pellegrino, a manager with proven experience in several large food companies including Galbani.

Pellegrino said: “This is an important next step for Gelato d’Italia as our teams work towards our vision of becoming a world-class ice-cream producer driven by innovation.”

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 We are deeply grateful to the current shareholders for their steadfast support, leadership, and guidance over the past many years.”

Gelato d’Italia, with a turnover of around 70 million euros, manufactures sorbets, ice-cream tubs and sandwiches, cones, popsicles, and ice-cream sticks.

The company’s famous four brands include the Gelato d’Italia line, Indianino, Gelato da Sogno and the vegan brand JoyVeg.

Davidson Kempner Capital Management revealed that Gelato d’Italia, founded in the 1930s, has almost “tripled” revenues in the past five years.

Yeşim Kanburoglu Ilbak, a partner at Afendis noted that ice-cream consumption is experiencing robust growth, particularly during the pandemic, and Gelato d’Italia is well-positioned to capitalize on these growth trends.

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Ilback added that the company has a strong management team, an established presence in major markets, and an expanding selection of products.

Indeed, according to Grand View Research, the global ice cream market size valued at US$79 billion in 2021, is projected to expand at a compound annual growth rate (CAGR) of 4.2% from 2022 to 2030.

The firm attributes the growth to the rising demand for innovative flavors, types, and the rising demand for impulse ice creams such as cones, sandwiches, and pops in developing countries.

In addition, the increasing health consciousness among consumers is also expected to fuel the demand for premium ice creams in the upcoming years.

Cyprus Recalls Häagen-Dazs Vanilla Ice Cream over pesticide concern

Elsewhere, Cyprus’ Health Ministry (MoH) has issued a recall notice of Häagen-Dazs Vanilla Ice Cream due to chemical contamination.

The recall is due to the presence of trace amounts of the chemical Ethylene Oxide found in this vanilla flavor of the ice cream.

Ethylene Oxide is classed under the Pesticides and Toxic Chemicals Act and Regulations as a Toxic Industrial Chemical in the country.

Although there is no immediate risk to consumption of food contaminated with low levels of ethylene oxide, long-term exposure may lead to health issues, the ministry said.

The batches contained pint-sized (473ml) products with an expiry date of April 13, 2023, and 2.5-gallon (9.46-liter) tubs for commercial purposes (expiry date Oct. 26, 2022), the company said in a statement.

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