A MAJOR European ice cream maker based in North Yorkshire has been bought by a French private equity firm for an undisclosed sum.

R&R Ice Cream of Leeming Bar – Europe’s largest own label ice cream maker – has been bought by Paris-based PAI Partners, with funds managed by Oaktree Capital Management.

R&R’s senior management team will continue to lead the business and are investing in the company. It has 11 production sites in the UK and Europe and revenues for the year ending December 31, 2012, were approximately 600m euro.

James Lambert, R&R chief executive and executive chairman, 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 benefited immensely from working with Oaktree and I would like to thank them for their support.”

The deal comes just weeks after R&R announced a £49m deal to buy Cadbury, Del Monte and Britvic ice-cream and refreshment licence holder Fredricks Dairies.

PAI, which previously invested in yoghurt firm Yoplait and United Biscuits, says it will support R&R’s expansion and product promotion that includes Skinny Cow ice cream, Fab lollies and Kelly’s Cornish ice cream.

R&R, which employs about 450 at Leeming, also holds the rights for ice-creams for Nestle, Yoo Moo frozen yoghurt and Disney.

Founded in 1985 as Richmond Ice Cream, with five employees, it merged with Leeds based ice lolly maker Treats Group in 1998, and bought Nestle Ice Cream’s UK business in 2001, allowing it to make and distribute Fab, Mr Men, Smarties and Rolo ice creams.

It merged with German ice cream maker, Roncadin, in 2006, with help from Oaktree managed funds, and in 2011 signed a deal with Kraft Foods to make Milka, Toblerone, Daim and Oreo products in ten European countries.

It has since gone on to buy a number of ice cream businesses, including Rolland and Pilpa, in France, Germany’s Durigon, and Italy’s largest own-label ice cream maker, Eskigel.

Colm O’Sullivan, PAI partner, 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.”

Jim Van Steenkiste, Oaktree managing director, said their partnership with R&R had been very successful.

He said: “We are delighted to have supported the company in achieving significant growth since our investment in 2006 and an enhanced market position.

“The company today is a leader in its sector and is well positioned for future growth.

We wish R&R every success in its new relationship with PAI.”