Dairy cooperative Milcobel today announces the successful completion of the sale of its subsidiary YSCO to Davidson Kempner Capital Management LP, supported by Afendis Capital Management as an operating partner.
This transaction fits seamlessly with Milcobel’s stated strategy of focusing entirely on its core dairy activities, more specifically premium dairy ingredients (such as mozzarella, grated cheese, milk powder, whey, butter and cream), consumer products (including well-known cheese brands such as Brugge Kaas and private label cheese), and distribution. Also, part of this strategy is the announced proposed merger with FrieslandCampina, with which Milcobel intends to form a resilient and future-proof cooperative.
Proceeds from the sale of YSCO will be invested in improving production processes, optimizing infrastructure and early repayment of long-term debts. This will create direct value for Milcobel’s member dairy farmers.
In addition, member dairy farmers benefit directly from the sale through an additional loyalty premium of 3EUR/100 litres of milk delivered: 1,5 EUR/100 litres on 2024 litres and 1,5 EUR/100 litres on 2025 litres delivered.
Commented Peter Grugeon, Milcobel CEO: “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 realising concrete benefits for our member dairy farmers. Together we are building a sustainable and future-oriented cooperative.” For more visit Milcobel.com
