Belgian dairy cooperative Milcobel is selling its Ysco ice cream division to US investment group Davidson Kempner. Ysco produces 190 million litres of ice cream a year for private labels, but Milcobel needs to focus on its dairy business.
The second largest producer
Ysco’s two factories, one at Langemark in Belgium and the other at Argentan in France, produce some 190 million litres of ice cream a year. The company manufactures ice cream for almost all the major European supermarket groups, and claims to be Europe’s second-largest private label ice cream producer.
Although the private label ice cream market is growing (average annual growth rate of 5%), it is also undergoing significant consolidation. With losses of 11.6 million euros last year, rising costs and a problematic ERP implementation, Milcobel is looking to exit the industry and focus entirely on its dairy business. Earlier in the year, the cooperative also carried out a reorganisation that resulted in the loss of 130 jobs.
The transaction will give Ysco the capital and capacity to pursue its development and position itself as Europe’s leading ice cream producer. The buyer, Davidson Kempner, is a global asset manager with assets of around 38 billion dollars and over 500 employees.
