Ben & Jerry's Founders Explore ESOP-Based Carve-Out With KKR Executive, WSJ Reports

The founders of Ben & Jerry's are exploring a deal to separate the iconic ice cream brand from its parent company through a potential carve-out led by a senior executive at private equity firm KKR, according to a report from The Wall Street Journal.

The Proposed Structure

The discussions involve KKR's global co-head of private equity, Pete Stavros, and Ben & Jerry's co-founder Ben Cohen, the WSJ reported on Monday. Central to the proposal is a plan to restructure the business under an employee stock-ownership plan (ESOP).

An ESOP structure would grant equity to the company's rank-and-file employees while also providing potential tax benefits for the business, the report added. This model would represent a significant shift in the brand's ownership and governance.

Context and Implications

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Ben & Jerry's is currently part of Unilever's ice cream division, which the consumer goods giant is in the process of spinning off into a standalone company. That division also includes major brands like Magnum. A potential carve-out of one of its most valuable brands could significantly impact the valuation and strategic direction of the newly independent ice cream business for investors.

The involvement of a high-profile private equity figure like Stavros is notable. The ESOP model also aligns with the socially progressive ethos that has long defined the Ben & Jerry's brand since its founding.

Sourcing and Company Response

The initial report from The Wall Street Journal cited both Stavros and Cohen as sources for the ongoing discussions. According to a subsequent report from Reuters, KKR, Ben & Jerry's, and the parent ice cream division did not immediately respond to requests for comment on the matter.