Milcobel Divests Ysco Ice Cream Business to Davidson Kempner Capital Management
Source: The DairyNews
Belgian dairy cooperative Milcobel has announced a strategic decision to divest its subsidiary, Ysco, an ice cream manufacturer, to Davidson Kempner Capital Management.
Ysco, established in 1949, has built a strong reputation as a specialist in private-label ice cream production for European retailers. The company operates state-of-the-art production facilities in Belgium and France, with an annual distribution capacity of up to 190 million litres of ice cream.
The proposed transaction is anticipated to inject the necessary capital and strategic focus into Ysco, enabling it to enhance its position as a leading private-label ice cream producer in Europe.
Upon successful completion of the transaction, a portion of the proceeds will be allocated to Milcobel’s member dairy farmers. This move will not only facilitate targeted investments aimed at increasing production capacity and optimizing dairy processes but also enhance the overall value of Milcobel’s operations. Additionally, reducing the cooperative's debt will lower financial costs, potentially resulting in higher milk prices for farmers. Milcobel is also considering strategic partnerships to further bolster its dairy operations.
Peter Grugeon, CEO of Milcobel, remarked, "Under Milcobel’s stewardship, Ysco has ascended to become a significant entity in the European private-label ice cream market. With the approval of this transaction, we are confident that Davidson Kempner and Afendis will provide the requisite focus and capital to expedite Ysco’s growth and enable it to capitalize on opportunities in the dynamic and consolidating ice cream market."
Grugeon added, "The transaction's proceeds will benefit our member dairy farmers, enabling us to reinforce the value of our dairy activities and partnerships. This will also allow us to concentrate on our consumer cheese business and premium dairy ingredients."
The transaction is subject to approval by the relevant competition authorities and will undergo a consultation process with the French Ysco Works Council, in compliance with local labor regulations.
The proposed transaction is anticipated to inject the necessary capital and strategic focus into Ysco, enabling it to enhance its position as a leading private-label ice cream producer in Europe.
Upon successful completion of the transaction, a portion of the proceeds will be allocated to Milcobel’s member dairy farmers. This move will not only facilitate targeted investments aimed at increasing production capacity and optimizing dairy processes but also enhance the overall value of Milcobel’s operations. Additionally, reducing the cooperative's debt will lower financial costs, potentially resulting in higher milk prices for farmers. Milcobel is also considering strategic partnerships to further bolster its dairy operations.
Peter Grugeon, CEO of Milcobel, remarked, "Under Milcobel’s stewardship, Ysco has ascended to become a significant entity in the European private-label ice cream market. With the approval of this transaction, we are confident that Davidson Kempner and Afendis will provide the requisite focus and capital to expedite Ysco’s growth and enable it to capitalize on opportunities in the dynamic and consolidating ice cream market."
Grugeon added, "The transaction's proceeds will benefit our member dairy farmers, enabling us to reinforce the value of our dairy activities and partnerships. This will also allow us to concentrate on our consumer cheese business and premium dairy ingredients."
The transaction is subject to approval by the relevant competition authorities and will undergo a consultation process with the French Ysco Works Council, in compliance with local labor regulations.
