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Blackstone, CD&R Explore Possible Bids for Magnum After Share Slide

Buyout funds are gauging the ice-cream group's share slide to time a possible approach.

Overview

  • Blackstone and Clayton, Dubilier & Rice are studying a takeover of Magnum Ice Cream Company, according to sources, and both firms declined to comment.
  • The firms are watching the share price and waiting for summer sales data before deciding whether to make offers, according to people familiar with the talks.
  • Magnum listed in December at about €7.8 billion, and the stock has slipped from €16.50 to about €13 after touching €11.
  • Unilever retains a 19.9% stake in the spin-off and intends to sell that holding within five years.
  • Magnum says it holds 21% of the $87 billion global ice-cream market, and sources point to cost cuts as a path to higher margins despite GLP-1 weight-loss trends.