Davidson Kempner and Afendis Complete YSCO Acquisition to Expand Ice Cream Operations

Davidson Kempner and Afendis Complete YSCO Acquisition

In a strategic move set to redefine the landscape of the European ice cream market, Davidson Kempner Capital Management LP and Afendis Capital Management have successfully acquired YSCO, a prominent ice cream manufacturer. The transaction, while details surrounding the financial aspects remain undisclosed, marks an important milestone for Glacier, Davidson Kempner's ice cream investment platform.

Expanding Ambitions in the Ice Cream Industry

The acquisition of YSCO is a transformative step for Glacier, significantly enhancing its growth trajectory within the global ice cream sector. Previously, in 2022, Glacier had acquired Gelato d'Italia, a leading independent ice cream maker known for its innovation and manufacturing capabilities across two sites in Italy. The joining of YSCO with Gelato d'Italia will formulate one of the largest third-party ice cream manufacturers globally, boasting impressive revenues exceeding €600 million.

This merger aligns both companies under shared commitments to innovation, operational efficiency, and a focus on customer satisfaction. YSCO is strategically situated, working closely with nearly all mainstream European retailers in the production and co-creation of home-brand ice cream products. YSCO's production facilities in Belgium and France distribute up to 200 million liters of ice cream annually, penetrating primarily the European market.

Glacier’s Strategic Vision

With this acquisition, Glacier aims to leverage its enhanced scale and capabilities to partner with ice cream brand owners globally. The company is focused on not only expanding its reach but also on establishing itself as the go-to third-party manufacturer in the ice cream industry. The commitment to rapid ideation-to-launch processes for new products is set to position Glacier favorably against its competitors.

Bert Van Nieuwenborgh, CEO of YSCO, expressed enthusiasm about the acquisition, stating, "This acquisition represents an exciting opportunity for YSCO to accelerate our growth as part of Glacier's ambitious vision. Our expertise in large batch production and strong retailer relationships perfectly complement Glacier's innovative approach. Together, we are well-positioned to lead the way in a rapidly growing and evolving market, delivering exceptional value to our partners and customers."

Cem Karakaş, the Chairperson of Glacier and Partner at Afendis, echoed this sentiment, noting, "Glacier is perfectly positioned to capitalize on strong growth in the fragmented European third-party ice cream sector. By building on Gelato d'Italia's success and leveraging YSCO’s capabilities, we are poised to become a leading player in Europe and launch further expansions across the globe."

The Future of Ice Cream Manufacturing

As part of Davidson Kempner and Afendis's overarching strategy, Glacier has united leading producers such as YSCO and Gelato d'Italia to form one of the world’s largest third-party ice cream manufacturers. This strategic alignment emphasizes Glacier's commitment to maximizing innovation, operational efficiency, and establishing industry standards that could reshape the market dynamics of ice cream production.

The acquisition not only signifies a growth opportunity for Glacier and its subsidiaries but also showcases the evolving nature of consumer preferences towards more diverse and innovative ice cream products. With substantial expertise in large scale production and a collaborative spirit with retailers, Glacier is setting the stage for an exciting new chapter in the ice cream industry.

As Davidson Kempner continues to expand its portfolio, the focus remains on fundamental investing and fostering partnerships that inspire growth and innovation within the food sector. The ice cream industry, with its diverse offerings and growing consumer demand, presents a compelling opportunity for further exploration and investment. This latest acquisition underlines Davidson Kempner's commitment to driving substantial market presence through strategic collaborations and a deep understanding of industry dynamics.