R&R Ice Cream to acquire ice cream maker Fredericks Dairies

Europe’s leading private-label ice cream maker R&R Ice Cream has entered into an agreement to acquire Lancashire-based ice cream manufacturer Fredericks Dairies in a deal worth £49m.

Fredericks Dairies, headquartered in Skelmersdale, England, has the licence to manufacture ice cream and iced refreshment brands such as Cadbury, Del Monte, Vimto, Britvic and Barratt’s.

The company, which achieved sales of £45m in the year to 31 August 2012, was the sole supplier of ice cream to the 2012 Olympic and Paralympics Games.

Under the terms of the agreement, Fredericks Dairies owners Frank and Philip Frederick will retain the Freezeserve cold storage and distribution business at Simonswood.

The transaction is subject to approval from the UK Office of Fair Trading.

Fredericks Dairies was advised by Manchester-based corporate finance company Rickitt Mitchell and law firm Eversheds over the sale proceedings.

R&R Ice Cream stated that the deal will enable the company to strengthen its presence in the UK ice cream market.

R&R Ice Cream CEO and executive chairman James Lambert said that Fredericks’ licensed products will be 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 500ml super-premium tub under the Oreo brand and this acquisition will allow us to accelerate this successful innovation programme alongside our popular Nestlé, Cadbury, Kelly’s and Yoo moo brands," Lambert added.

R&R Ice Cream, based in North Yorkshire, has a strong presence in Europe, owning brands such as Skinny Cow, Fab and Kelly’s of Cornwall.

---

Image: R&R Ice Cream said that the acquisiton of Fredericks Dairies will enable the company to strengthen its presence in the UK ice cream market. Photo courtesy of Michael Illuchine.