Exclusive-Blackstone, CD&R explore bids for Ben & Jerry’s owner Magnum, sources say

By Amy-Jo Crowley and Richa Naidu

LONDON, May 15 (Reuters) – Blackstone and CD&R are among private equity firms in the early stages of exploring bids for Magnum Ice Cream Company, two sources ​familiar with the matter told Reuters, less than six months ‌after the owner of Cornetto and Ben & Jerry’s was spun out of Unilever.

The firms are monitoring Magnum’s share price before deciding whether to make a move, the two people said.

Magnum’s shares have fallen from a high of 16.5 euros ($19.19) earlier this ‌year ​to trade close to their debut price ⁠at about 13 euros. The ⁠ice cream maker listed on December 8 with a valuation of about 7.8 billion euros, below analyst expectations of up to 10.8 billion euros. The shares have traded as low as 11 euros.

British ​consumer goods giant Unilever, which took nearly two years to list its ice cream brands, retains a 19.9% stake in Magnum and plans ⁠to exit within five years.

Deliberations are at ⁠an early stage, and both firms are waiting for ​Magnum to report summer sales before making a decision, one of the ​sources said. Magnum makes a large share of its revenue ‌during that period. Other private equity firms are also interested, the people added.

Magnum, Unilever, Blackstone and CD&R declined to comment.

A deal to take Magnum private would be the latest in Europe as private equity firms seek ⁠to deploy funds after several years of subdued dealmaking.

Magnum is trading in an environment where some shoppers are opting for healthier choices amid a boom ⁠in GLP-1 weight-loss drugs.

However, ‌the company could offer buyout firms a turnaround ⁠opportunity through cost cuts and margin expansion, bringing it ​closer ‌to rival Froneri, the two sources said.

Magnum says it ​holds about ⁠21% of the $87 billion global ice cream market, ahead of Froneri’s 11%.

Froneri, a joint venture between PAI Partners and Nestle, secured an investment in October that valued the company at 15 billion euros.

($1 = 0.8597 euros)

(Reporting by Amy-Jo Crowley and Richa Naidu in London. Editing by Anousha Sakoui, Lisa Jucca ​and Mark Potter)