Milcobel Completes Sale of YSCO, Focusing on Core Dairy Activities

Milcobel, the Belgian dairy cooperative, has successfully concluded the sale of its subsidiary YSCO to Davidson Kempner Capital Management LP, with Afendis Capital Management acting as an operating partner. YSCO, notable for its private label ice cream production, operates out of facilities in Belgium and France.

This transaction aligns with Milcobel’s strategic pivot towards focusing on its primary dairy activities, particularly the production of premium dairy ingredients like mozzarella, grated cheese, milk powder, and others, alongside consumer dairy products and distribution channels. Furthermore, Milcobel has revealed a proposed merger with FrieslandCampina to form a robust and sustainable cooperative.

The proceeds from the YSCO sale are earmarked for enhancing production processes, optimizing infrastructure, and expediting the payoff of long-term debts, which directly benefits Milcobel's member dairy farmers. Additionally, farmers will receive an increased loyalty premium of €3/100 liters of milk delivered, divided across 2024 and 2025 deliveries.

Milcobel CEO Peter Grugeon highlighted, “With the successful sale of YSCO, we are taking an important step in our strategy to fully focus on our core dairy business. This allows us to operate stronger and more efficiently, while realizing concrete benefits for our member dairy farmers. Together we are building a sustainable and future-oriented cooperative.”