LONDON, Jan 22 (Reuters) - Three private equity firms have gone through to the second round of bidding for R&R Ice Cream, the maker of Fab lollies and Skinny Cow ice cream, banking sources said.
Clayton, Dubilier & Rice (CD&R), Ontario Teachers Pension Plan and PAI Partners are interested in buying the firm, which could fetch around 900 million euros ($1.2 billion), the sources said on Wednesday.
R&R, owned by investment firm Oaktree Capital Management, said in October it was exploring strategic options that could include a sale.
Oaktree was not available to comment, while the three private equity firms and R&R declined to comment.
Bankers are working on putting debt packages together to back the buyout which is expected to include a high yield bond as the firm has an existing 350 million euro bond, issued in November 2010.
R&R, based in Britain, raises its revenue across Europe.