Magnum Ice Cream jumps 18% on report of private equity interest

Shares of Magnum Ice Cream Company NYSE:MICC surged 18% on Friday after a Reuters report said private equity firms, including Blackstone and Clayton, Dubilier & Rice, were in the early stages of exploring a potential bid for the recently spun-off ice cream maker.

The rally comes only six months after the company separated from Unilever to become the world’s largest standalone ice cream business.

According to Reuters, the buyout firms are closely monitoring Magnum’s share price and operational performance before deciding whether to pursue a transaction.

Sources familiar with the matter said the firms were likely to wait for the company’s crucial summer sales season before taking further steps.

The stock entered Friday’s session trading near the same level as its December 2025 listing price, despite volatile trading since the spin-off.

Shares have fallen from a high of 16.5 euros earlier this year to around 13 euros, close to their debut valuation.

Magnum is listed with an implied market value of roughly 7.8 billion euros, below analyst expectations that had reached as high as 10.8 billion euros.

The shares have traded as low as 11 euros.

Summer sales seen as key test

Magnum generates a significant portion of its annual revenue during the warmer summer months in Europe and North America, making the upcoming season especially important for investors and potential acquirers.

Reuters reported that deliberations remain at an early stage and that several private equity firms have shown interest in the company as buyout activity gradually returns across Europe after years of subdued dealmaking.

Unilever still retains a 19.9% stake in Magnum and has said it plans to fully exit the holding within five years.

The company owns several globally recognized brands, including Ben & Jerry’s, Cornetto and Magnum, and says it controls about 21% of the $87 billion global ice cream market, ahead of rival Froneri’s estimated 11% share.

Froneri, a joint venture between Nestlé and private equity-backed PAI Partners, secured an investment last year that reportedly valued the business at about 15 billion euros.

Weight-loss drugs remain an overhang

Despite its dominant market position, Magnum has faced investor concerns linked to slowing consumption trends and the growing popularity of GLP-1 weight-loss drugs.

In February, the company reported a 3% decline in fourth-quarter sales volumes, significantly worse than analyst expectations for modest growth.

The weak performance intensified concerns that appetite-suppressing drugs could weigh on demand for indulgence-focused food categories such as ice cream.

However, results improved in the first quarter, with sales growth recovering to 4.5%.

Even so, analysts continue to view GLP-1 adoption as a long-term headwind for the sector, particularly in developed markets such as Europe and the United States, which account for roughly three-quarters of Magnum’s sales.

At the same time, some investors see potential for operational improvements under private ownership.

Sources told Reuters that buyout firms could view Magnum as a turnaround opportunity through cost reductions and margin expansion, potentially narrowing the profitability gap with competitors such as Froneri.

The broader global ice cream market is projected to grow between 3% and 4% annually through at least 2029.

Magnum has said it aims to outpace that growth, targeting annual expansion of as much as 5% through increased marketing investment, wider distribution and market share gains.