Milcobel succesfully completes sale of YSCO to Davidson Kempner

Kallo, Jan. 8, 2025 - Dairy cooperative Milcobel today announces the successful completion of the sale of its subsidiary YSCO to Davidson Kempner Capital Management LP (“Davidson Kempner”), supported by Afendis Capital Management (“Afendis”) 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 liters of milk delivered: 1,5 EUR/100 liters on 2024 liters and 1,5 EUR/100 liters on 2025 liters delivered.

Peter Grugeon, CEO of Milcobel: “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.”

About Milcobel

Milcobel is one of the largest cooperative dairy companies in Belgium, combining the passion and expertise of its member dairy farmers and employees. With a rich tradition and an eye to the future, Milcobel produces high-quality dairy products, including cheese, butter, cream and milk powder, which find their way to customers in 80 countries worldwide.

About YSCO

YSCO is a leading private label ice cream producer in Europe, with production facilities in Belgium and France. The company works closely with major European retailers to co-create and produce their private label ice cream products and distributes approximately 190 million liters of ice cream annually.

About Davidson Kempner Capital Management LP

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.

About Afendis Capital Management

Afendis Capital Management is a specialist investor and investment manager of food and pharmaceutical businesses.