R&R Ice Cream, in Leeming Bar, North Yorkshire, has Fredericks acquisition backed by Office of Fair Trading

R&R Ice Cream, which employs about 450 workers at Leeming Bar, near Bedale, North Yorkshire, has received backing from the Office of Fair Trading (OFT) to acquire Fredericks Dairies.

The Skelmersdale-based company, in Lancashire, holds licences to make ice-creams and refreshments for Cadbury, Del Monte and Britvic, and recorded sales of £45m as sole supplier for the London 2012 Olympic and Paralympic Games.

OFT bosses had been assessing whether R&R, who make a range of Nestle ices and runs the Fab lollies brand, would reduce competition with the agreement.

The deal is R&R's 12th UK acquisition, and it follows a deal with Mondelez International to produce ice-cream products of Toblerone, Daim and Oreo across ten European markets.

James Lambert, R&R chief executive and executive chairman, previously told The Northern Echo the Fredericks deal would help the firm compete against rival Unilever.

He said: “We will be employing more people in the next two years and are laying the foundations for that.

“We are an established employer and want to look at new markets, such as Spain and Russia, because we have the knowledge and machinery to keep growing.”

Confirmation of the Fredericks deal comes just weeks after R&R was bought by Paris-based private equity firm, PAI Partners, to strengthen its international presence.

PAI previously invested in Yoplait and United Biscuits, and says it will support R&R's product promotion, which includes the Skinny Cow and Kelly's Cornish ice-cream brands.