- Jul 31, 2024
- 2 min read
Belgian dairy cooperative Milcobel has announced plans to sell its subsidiary ice cream producer Ysco to Davidson Kempner Capital Management.
Founded in 1949, Ysco specialises in private-label ice cream for European retailers. It operates production facilities in Belgium and France, distributing up to 190 million litres of ice cream annually.
According to the company, the planned transaction is expected to provide Ysco with the capital and focus necessary to grow and position itself as Europe's leading private-label ice cream producer.
If the transaction is approved, part of the proceeds will be returned to member dairy farmers. Additionally, it would allow for targeted investments in increasing capacity and optimising Milcobel's dairy production processes, enhancing overall value. Reducing debt would also lower financial costs, potentially leading to higher milk prices. Milcobel said it is also exploring partnerships to further strengthen its dairy operations in the future.
Peter Grugeon, CEO of Milcobel, said: "Under Milcobel’s ownership, Ysco has grown into a major player in the European private-label ice cream market. If the transaction is approved, we are confident that Davidson Kempner and Afendis will provide the focus and capital needed to accelerate Ysco's further growth and enable it to seize opportunities in a dynamic and consolidating ice cream market."
"The proceeds of this transaction would benefit our member dairy farmers and would enable us to continue to build on the value of our diary activities and partnerships, and to focus on our consumer cheese business and our premium dairy ingredients."
The transaction requires approval from the relevant competition authorities and must go through a consultation process with the French Ysco Works Council in accordance with local labour laws.
