Belgian dairy cooperative Milcobel plans to sell its Ysco private-label ice-cream subsidiary to a pair of investors.
Davidson Kempner Capital Management and Afendis Capital Management are set to buy the business for an undisclosed sum, subject to competition approval, Milcobel, one of the largest dairy co-ops in Belgium, said.
Set up in 1949, Ysco supplies own-label ice cream to European retailers from two manufacturing plants – one in Langemark, Belgium, and another in Argentan, France. Formats include sticks, cones and tubs, along with ice-cream-based cakes.
Annual volumes amount to 190 million litres off 28 automated production lines. Turnover last year was €405m ($439m) and the company employs around 950 people, according to its website.
Peter Grugeon, who took over as Milcobel’s CEO in May, said: “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 dairy activities and partnerships, and to focus on our consumer cheese business and our premium dairy ingredients.”
Kallo-based Milcobel produces the Belgium cheese brands Brugge and Nazareth and also supplies private label under its consumer division. Its ingredients business produces cheeses such as mozzarella and cheddar, along with butter, cream, whey and milk powders. Turnover last year was €1.3bn.
Milcobel said in a joint statement with Davidson Kempner that the disposal of Ysco “would create room for targeted investments in additional capacity and optimising” its production processes.
It added the “deleveraging” from ice cream would “result in lower financial charges, which has a positive effect on the milk price”.
Milcobel only issued its 2022 results in March. The co-op registered a 19% increase in turnover. Net profit was €4.4m, down from €10.7m in the previous 12 months.
