Blackstone and CD&R Consider Bid for Magnum Ice Cream

Private equity firms Blackstone and Clayton, Dubilier & Rice (CD&R) are evaluating potential bids for Magnum Ice Cream Company, the owner of Ben & Jerry’s and Cornetto, according to sources familiar with the matter on May 15. The discussions are at an early stage, and the firms are watching Magnum’s share price and upcoming performance before deciding whether to proceed.

The interest comes less than six months after Magnum was spun out of Unilever and listed on December 8, when the company was valued at about 7.8 billion euros. Analysts had expected a valuation of up to 10.8 billion euros.

Magnum’s shares have fallen from a high of 16.5 euros ($19.19) earlier this year to about 13 euros, close to the debut price. After the report of possible private equity interest, the shares jumped nearly 16%.

Unilever retains a 19.9% stake in Magnum and has said it plans to divest the holding within five years. Other private equity firms are also reported to be interested in Magnum, the sources said.

Summer sales seen as key decision point

One source said both Blackstone and CD&R are waiting for Magnum’s summer sales report before making a decision. A significant portion of Magnum’s revenue is generated during the summer period, making those results a key indicator of near-term demand and pricing strength.

The deliberations remain preliminary, and no final decision has been made on whether to submit a bid, the sources said.

Turnaround case and broader dealmaking backdrop

Magnum has said it holds about 21% of the $87 billion global ice cream market. The sources described the company as a potential turnaround target for buyout firms, pointing to possible cost reductions and margin expansion as levers to improve performance.

The potential transaction would also fit with a broader pickup in private equity activity in Europe after a period of subdued dealmaking, as firms look for opportunities to deploy capital.

Investors will watch for Magnum’s upcoming seasonal sales update and for any indications that Unilever’s planned exit timetable could shape the company’s ownership outlook.