Shares of Magnum Ice Cream (MICC) are up 12% on reports that private equity firms Blackstone (BX) and CD&R are planning to take the company private.
Rumors that Magnum Ice Cream could be bought and taken private come six months after the company was spun off from Unilever (UL) to create the world’s largest ice cream maker.
The private equity firms are reportedly monitoring the company’s share price and waiting for Magnum to report summer sales figures before deciding whether to make a bid.
Magnum owns the eponymous ice cream brand, as well as Cornetto, Heartbrand, and Ben & Jerry’s.
A group led by Ben & Jerry’s co-founder Ben Cohen have been advocating for the brand to become independent from Magnum and previously Unilever.
The campaign, called “Free Ben & Jerry’s,” has been ongoing for years, with Cohen slamming both Magnum and Unilever for squashing the ice cream maker’s long-held social mission.
Ben & Jerry’s originally donated a large portion of its sales to support social causes and philanthropy. But Unilever and Magnum have not continued that tradition.
Magnum reported first-quarter sales growth that topped Wall Street’s expectations, boosting the stock price.
MICC stock is flat over the past year (up 0.67%) and trading at $15.02 U.S. per share.
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