Food giant Nestlé has agreed to set up a joint venture for its frozen pizza business in Europe with private equity firm PAI Partners.
The move will see Nestlé retain a non-controlling stake with equal voting rights alongside PAI Partners.
The transaction, subject to employee consultations and the approval of regulatory authorities, is expected to close in the second half of 2023.
Nestlé and PAI Partners have not disclosed the financial details of the deal.
The Best Platform
Marco Settembri, executive vice-president and chief executive officer of 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."
The proposed partnership will only cover Nestlé's frozen pizza business in Europe, the Swiss company noted.
The company's pizza business in the United States is not part of the transaction.
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 and consumer. We are delighted to once again partner with Nestlé to replicate our previous success."
In 2016, Nestlé teamed up with PAI Partners to create Froneri, a joint venture for the company's global ice cream business.
Read More: 10 Ways In Which Nestlé Is Positioning Itself For The Future
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