R&R Ice Cream has acquired Australian business Peters Food Group.

Backed by funds from investment group PAI Partners, R&R Ice Cream has bought the supplier from Pacific Equity Partners (PEP), which purchased Peters from Nestlé in 2012. The deal – details of which have not been disclosed – includes Australian ice cream brands such as Drumstick, Connoisseur, Peters Original and Maxibon.

R&R said it was “fully committed” to continuing to invest in Peters - which has a turnover of around A$269m (£148m) - and the company’s “long history of innovation”. The existing Australian executive leadership team will continue to develop the business locally and as a part of the broader global R&R operation. Peters, which employs around 500 people, will continue to operate from its facility in Mulgrave.

This is the first time R&R has extended its reach outside Europe, and comes two months after R&R CEO Ibrahim Najafi told The Grocer he was keen to take the business further overseas. He said he had travelled from “Russia to Scandinavia and down in the Middle East” in search of potential acquisitions. “There are still a lot of gaps - we are going to have a geographical footprint outside Europe and we are going to have a turnover of more than €1bn,” he said at the time. Before the Peters acquisition, R&R turned over about €680m a year.

Speaking of the Peters deal, Najafi said: “Peters is an iconic Australian business and the leader in the Australian ice cream manufacturing market; it will be an exciting complement to R&R’s European presence. We look forward to working with Stephen and his team and accelerating our growth as one combined business.”

Founded in 1985, Yorkshire-based R&R is the largest private-label ice-cream manufacturer in Europe and the second largest ice cream manufacturer overall in Europe. Its licensed portfolio includes Mondelez and Nestlé brands such as Cadbury Dairy Milk, Oreo, Milka, Smarties and Kit-Kat; and it also sells ranges including YooMoo frozen yogurt and Kelly’s of Cornwall.

Financial advisers to PEP were Morgan Stanley, Allens provided legal advice and PWC provided accounting and tax advice. Financial advisers to R&R were Rothschild. Allen & Overy provided legal advice and KPMG provided accounting and tax advice.

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