Ruby Acquisitions, a company controlled by funds managed by Oaktree Capital Management, has agreed a recommended offer to acquire Richmond Foods for 750p in cash, valuing the share capital of Richmond at £182.2m (US$336m).
The consideration represents a premium of 23.7% to the closing price of 606.5p per share on April 4 2006.
Following the acquisition of Richmond, Oaktree intends to combine it with its other ice cream business Roncadin.
Oaktree has been advised by Deutsche Bank, and Richmond by Investec.
Over the last 10 years, Richmond claims to have “led the consolidation of the UK ice cream manufacturing sector, including the acquisition of five businesses in the last six years. Richmond is the largest [by volume] manufacturer of ice cream in the UK,” it says.