Peters Ice Cream private equity owners have entered into exclusive negotiations with French ice-cream giant R&R, and are expected to sell for over $400 million.
The sale price equates to a valuation of about eight times next year's forecast earnings before interest, tax, depreciation and amortisation, the Sydney Morning Herald reports.
Over the past month, Pacific Equity Partners (PEP), and joint lead advisers Macquarie and Morgan Stanley to a mooted initial public offer, have met fund managers in Australia and Asia to gauge the level of appetite for Peters Ice Cream.
PEP stepped up the pressure this week, asking institutional investors to cough up for the business or risk being frozen out in favour of a trade sale.
PEP bought Peters in August 2012 for about $250 million, and hopes to secure a deal by June 30.
A marketing presentation shown to fund managers showed that Peters is the market leader in the grocery division of the nation's $2.3 billion ice cream industry.
The company's pro forma revenue is projected to rise from $269.3 million in 2014 to $290.3 million in 2015.
In March, there was speculation that Murray Goulburn had made a $400m takeover bid for Peters. MG looked to purchase Peters two years ago before it was bought by PEP for from the former owner, Nestle.