Belgian dairy cooperative Milcobel is planning to sell its Ysco private-label ice-cream subsidiary to investors. Davidson Kempner Capital Management and Afendis Capital Management are set to acquire the business, pending competition approval. Established in 1949, Ysco supplies own-label ice cream to European retailers from manufacturing plants in Langemark, Belgium, and Argentan, France. The company offers various formats, including sticks, cones, tubs, and ice-cream-based cakes, with annual volumes reaching 190 million liters from 28 automated production lines. Turnover for Ysco was €405m ($439m) last year, employing around 950 people.
Peter Grugeon, Milcobel’s CEO since May, expressed confidence in the potential growth of Ysco under the ownership of Davidson Kempner and Afendis. He stated, “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 from the transaction will benefit Milcobel’s member dairy farmers and support the development of the consumer cheese business and premium dairy ingredients.
Milcobel, based in Kallo, produces popular Belgium cheese brands such as Brugge and Nazareth, in addition to supplying private-label products under its consumer division. The company’s ingredients business manufactures cheeses like mozzarella and cheddar, along with butter, cream, whey, and milk powders, generating a turnover of €1.3bn last year. In a joint statement with Davidson Kempner, Milcobel highlighted that the sale of Ysco would allow for targeted investments in additional capacity and optimization of production processes. The “deleveraging” from the ice cream business is expected to lead to lower financial charges and have a positive impact on milk prices.
Milcobel’s recent financial results, released in March, revealed a 19% increase in turnover. However, net profit decreased to €4.4m from €10.7m in the previous fiscal year. The disposal of Ysco is seen as a strategic move to streamline operations and focus on key areas of growth within the food and beverage industry. In an ever-evolving market landscape, such strategic decisions play a crucial role in maintaining competitiveness and addressing changing consumer trends.
