NORTH Yorkshire ice cream manufacturer R&R Ice Cream is to be bought by private equity firm PAI Partners in a multi million-pound deal.

R&R Ice Cream, originally Richmond Ice Cream, started out in 1985 as a North Yorkshire-based own label ice cream manufacturer and has grown significantly through acquisition, recording a turnover of 600 million euros, or £506 million, in 2012.

Subject to approval it will be bought from another private equity company, Oaktree Capital Management, as well as the other shareholders of R&R for a sum believed to be more than £700 million.

James Lambert, chief executive and executive chairman at R&R Ice Cream, said: “We are very excited to be partnering with PAI and working together on our next phase of development as we continue with our growth strategy across our brands.

"We have benefitted immensely from working with Oaktree and I would like to thank them for their support.”

Oaktree managed funds acquired Richmond Foods Plc in 2006 and subsequently merged it with German ice cream firm Roncadin to form R&R. Since 2006, R&R has acquired a number of ice cream businesses including Rolland and Pilpa in France, Durigon in Germany and Eskigel, Italy’s largest own-label ice cream manufacturer.

Today, the company has 11 production sites across the UK and mainland Europe.

R&R’s senior management team will continue to lead the business and both they and PAI has pledged to invest in the business.

Colm O’Sullivan, partner at PAI Partners, said: “R&R is a market-leading company with a strong portfolio of innovative products and excellent potential to expand in the UK and internationally.

"The food and consumer brands sector is a core area of investment focus and expertise for PAI and we are delighted to be investing in R&R. We look forward to working closely with the company’s management and supporting the company’s continued growth.”

R&R, which is headquartered in Leeming Bar, is Europe’s leading supplier of own-label ice cream and also makes product branded as Nestlé, Skinny Cow, YooMoo frozen yoghurt, Kelly’s of Cornwall and Disney.