April 11, 2013
R&R Ice Cream to buy Fredericks Dairies for US$75 million
R&R Ice cream, Europe's leading own label ice cream manufacturer, has agreed to acquire UK-based ice cream producer Fredericks Dairies for Â£49 million (US$75 million).
Fredericks Dairies, headquartered in Skelmersdale, England, has license to manufacture ice creams and iced refreshments for food brands such as Cadbury, Del Monte, Vimto, Britvic and Barratt's. In 2012, Fredericks Dairies reported sales of Â£45 million (US$69 million).
Under the agreement, Fredericks Dairies owners Frank and Philip Frederick will retain Freezeserve cold storage and distribution business at Simonswood. The transaction is subject to the approval of the Office of Fair Trading.
R&R Ice Cream stated that the acquisition would help the company to strengthen its presence in the UK ice cream market.
R&R Ice Cream CEO and executive chairman James Lambert said that the Fredericks' licensed products would provide valuable additions to R&R's branded portfolio.
"It will also enable R&R to extend its successful partnership with Mondelez International into the UK."
"Fredericks is already launching a cone and 500 millilitres super-premium tub under the Oreo brand and this acquisition will allow us to accelerate this successful innovation programme alongside our popular Nestle, Cadbury, Kelly's and Yoo moo brands," Lambert added.
R&R Ice Cream, based in North Yorkshire, is Europe's leading own-label ice cream manufacturer. The company's brands include the Skinny Cow, Fab and Kelly's of Cornwall.