In a strategic move to sharpen its focus on premium dairy products, Belgian dairy cooperative Milcobel has completed the sale of its ice cream subsidiary YSCO to Davidson Kempner Capital Management LP, with Afendis Capital Management serving as an operating partner. YSCO, known for producing private-label ice cream, operates facilities in Belgium and France.
The sale aligns with Milcobel’s strategy to concentrate on its core dairy activities, including premium dairy ingredients such as mozzarella, grated cheese, milk powder, whey, butter, and cream. Additionally, the cooperative plans to strengthen its consumer product lines, including its flagship cheese brand Brugge Kaas, and enhance its private-label offerings and distribution capabilities.
Read More : Plant-based ice cream
This transaction comes amid Milcobel’s proposed merger with FrieslandCampina, a move designed to create a more resilient, future-ready cooperative.
Milcobel has stated that proceeds from the YSCO sale will be reinvested to enhance production processes, optimize infrastructure, and expedite the repayment of long-term debt. These initiatives are expected to generate immediate value for its member dairy farmers.
To further benefit its members, the cooperative announced a loyalty premium of €3 per 100 liters of milk delivered, with €1.5 per 100 liters allocated for 2024 and another €1.5 for 2025.
Peter Grugeon, CEO of Milcobel, emphasized the importance of the sale in advancing the cooperative’s long-term vision. “With the successful sale of YSCO, we are taking an important step in our strategy to fully focus on our core dairy business. This allows us to operate stronger and more efficiently, while realizing concrete benefits for our member dairy farmers. Together we are building a sustainable and future-oriented cooperative,” Grugeon said.
The sale marks a pivotal moment for Milcobel as it continues to position itself as a leading player in the premium dairy sector.