Life tastes better with ice cream – or at least that’s the pitch to investors from The Magnum Ice Cream Company (TMICC).
TMICC is the new name for the world’s largest ice cream business, with brands including Magnum, Ben & Jerry’s, Wall's and Carte D’Or. This €8bn annual sales business will shortly be spun out of its parent, Unilever (LON:ULVR).
The demerger will separate a business whose capital intensity, lower margins and supply chain requirements are not seen as a good fit with the remainder of the consumer goods group.
TMICC is scheduled to begin trading on the LSE, Euronext Amsterdam and the NYSE on Monday 8 December 2025. The new company’s UK ticker code will be MICC.
Unilever shareholders like me will automatically receive a tranche of Magnum shares in their brokerage accounts shortly after this date.
At this point, investors will have a choice.
One option is to do nothing and simply pretend that Unilever and TMICC are still effectively a single position in our portfolio. That’s not necessarily a bad idea.
However, I suspect many investors – and certainly many fund managers – will want to take a more deliberate approach and either scale up or sell their Magnum holdings. .
For this reason, I’d imagine we may see quite a lot of trading following the demerger. Depending on pricing and demand, there could also be some price weakness.
If the Magnum business is attractively priced and scores well for quality, this might be an interesting opportunity to build a larger position.
In this piece, I’m going to take a look at The Magnum Ice Cream Company to learn more about its business, likely financial profile and expected valuation. I’ll attempt to answer the question at the top – what should I do with my Magnum Ice Cream shares?
Why I’m interested in spin-offs
IPOs are often overpriced and overleveraged. I tend to steer clear of them for a few years. But I’ve found that demergers – or spin-offs – can sometimes be quite lucrative opportunities. The operation being demerged is not necessarily a bad business; it may just be a poor strategic fit.
Demerging a business like Magnum means it will become the sole focus of a dedicated management…
.JPG)
