Nestle USA and General Mills announced an agreement whereby Nestle has acquired General Mills' fifty percent ownership stake in Ice Cream Partners USA

Food & Drink Weekly, Jan 14, 2002

Nestle USA and General Mills announced an agreement whereby Nestle has acquired General Mills' fifty percent ownership stake in Ice Cream Partners USA. Under the terms of the agreement, Nestle will have a long-term (99-year), paid in full license for use of the Haagen-Dazs brand in the United States in connection with frozen dessert products.

In addition, Nestle bought out the existing licensing arrangement with Pillsbury under which Nestle manufactures and distributes Haagen-Dazs products in Canada. Nestle paid $641 million to General Mills in the transaction. Ice Cream Partners USA was formed in August 1999 and combined Pillsbury's Haagen-Dazs frozen desserts with Nestle's novelty ice cream business. Sales for 2000 are approximately $700 million. General Mills' acquisition of Pillsbury triggered a change of control provision in the joint venture agreement, allowing Nestle to purchase the other 50 percent of the U.S. venture. General Mills will continue to own and operate the Haagen-Dazs business outside of the U.S. and Canada.