Davidson Kempner Capital Management and Afendis Capital Management have agreed to acquire YSCO from Milcobel

YSCO

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, predominantly within the European market.

The Deal

Belgian dairy cooperative, Milcobel, in July announced its intended sale of its subsidiary ice cream producer YSCO to Davidson Kempner, supported by Afendis as an operating partner. Following that announcement the parties have signed a Sale & Purchase Agreement. As Europe’s second-largest private-label ice cream producer, YSCO is uniquely positioned to benefit from this fast-growing yet fragmented market. The transaction will empower YSCO with the capital and focus needed to position the business as the European leading private-label ice cream producer.

Our Perspective

Alex Masters, Lincoln International Managing Director who led the transaction, commented, “It has been a pleasure to support Davidson Kempner and Afendis’ teams on their investment in YSCO. With their support and YSCO’s established market position, YSCO is uniquely positioned to capitalize on the dynamic and consolidating ice cream market.”

This deal further builds Lincoln International’s expertise in the ice cream sector: having previously advised on the sale of Gelato d’Italia to Davidson Kempner and Afendis and having advised on the financing of The Mochi Ice Cream Company, a fast growing branded US Mochi brand.

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 more than 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 are sold to customers in more than 100 countries worldwide.

Davidson Kempner Capital Management

Davidson Kempner is a global investment management firm with more than 40 years of experience and a focus on fundamental investing with a multi-strategy approach. Davidson Kempner has over $37 billion in assets under management and more than 500 employees across seven offices in New York, Philadelphia, London, Dublin, Hong Kong, Shenzhen and Mumbai.

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