Press Release
Milcobel Intends to Focus on Dairy Business and Plans Sale of YSCO to Davidson Kempner

Belgian dairy cooperative Milcobel today announced its intended sale of its subsidiary ice cream producer YSCO to Davidson Kempner Capital Management LP (“Davidson Kempner”), supported by Afendis Capital Management Limited (“Afendis”) as an operating partner. Financial terms of the transaction were not disclosed. Houlihan Lokey served as the exclusive corporate finance advisor to Milcobel and assisted in negotiating all aspects of the transaction on their behalf.

Founded in 1949, YSCO focuses entirely on the private label market in Europe, working closely with almost all the mainstream European retailers for the co-creation and production of their home brand ice cream products. YSCO has production capabilities in Belgium and France and distributes up to 190 million liters of ice cream per year, predominately within the European market.

The European private label ice cream market is very dynamic, with a continuous growth rate of 5% CAGR over the past years and is expected to grow further in the coming years. As Europe's second largest private label ice cream producer, YSCO is uniquely positioned to take advantage of this fast-growing but highly fragmented market. This intended transaction would empower YSCO with the capital and focus needed to further grow and position the company as Europe's leading private label ice cream producer.

The planned transaction would represent significant benefits for Milcobel and its member shareholders. If the transaction is approved, part of the proceeds will flow back to member dairy farmers. Moreover, it would create room for targeted investments in additional capacity and optimizing Milcobel's dairy production processes, resulting in stronger valorization. ​ In addition, deleveraging would result in lower financial charges which has a positive effect on the milk price. Milcobel is also exploring partnerships to further strengthen its dairy operations for the future.

Peter Grugeon, CEO of Milcobel, said: "Under Milcobel’s ownership, YSCO has grown into a major player in the European private label ice cream market. 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 diary activities and partnerships, and to focus on our consumer cheese business and our premium dairy ingredients."

This transaction would make Milcobel one of the last dairy companies to sell its ice cream business.

Agreement subject to approval

This transaction is subject to the approval of the relevant competition authorities and to going through the consultation procedure with the French YSCO Works Council (Comité social et économique), in accordance with local labor laws.

About Milcobel

Milcobel is one of the largest cooperative dairy companies in Belgium. Milcobel combines the passion and expertise of its member dairy farmers and employees, who join forces in a dairy cooperative with a rich tradition and an eye to the future. Milcobel realized a turnover of 1.3 billion € in 2023 and processes 1.3 billion liters of milk annually, resulting in top quality dairy products produced in three business units: consumer products, premium ingredients and YSCO. Milcobel produces consumer cheese, ice cream and premium dairy ingredients such as mozzarella, cheddar, butter, cream, whey and premium milk powders - which find their way to customers in more than 100 countries worldwide.www.milcobel.com

​About YSCO

A subsidiary of the Belgian dairy cooperative Milcobel, Ysco focuses on producing private label ice cream for the European market. It works closely with almost all major European retailers for the co-creation and production of their private label. YSCO has two production sites: Langemark in Belgium and Argentan in France. It produces about 190 million liters of ice cream per year with 28 fully automated production lines. Its core values are quality, safety, sustainability, automation and service. www.ysco.eu

About Davidson Kempner Capital Management

Davidson Kempner Capital Management LP is a global investment management firm with over 40 years of experience and a focus on fundamental investing with a multi-strategy approach. Davidson Kempner has approximately $37 billion in assets under management and over 500 employees across seven offices: New York, Philadelphia, London, Dublin, Hong Kong, Shenzhen and Mumbai. Additional information is available at: www.davidsonkempner.com

Press contacts

Milcobel

Kathleen De Smedt

​Email: kathleen.de.smedt@milcobel.com

​Tel.: +32 (0)478 88 44 82

Davidson Kempner Capital Management (Greenbrook)

Alan Tovey and Teresa Berezowski

Email: davidsonkempner@greenbrookadvisory.com

Tel: +44 (0) 20 7952-2000