THE board of ice cream maker Richmond Foods yesterday agreed to a £182m takeover by a unit of US investment firm Oaktree Capital.

North Yorkshire-based Richmond, which is best known for its Nestle-branded products, said that Oaktree intended to combine the business with its German ice cream business Ron-cadin.

Caleb Kramer, managing director of Oaktree, said: "Our goal is for Richmond to remain focused on its core geographical market but once combined with Roncadin, to lift both companies' strong market positions and reputation for high-quality products to enable us to serve customers on a pan-European basis."

Richmond Foods, which employs 800 people, including 350 in the region, last year considered buying Roncadin as part of its own European expansion, but the operator was bought by Oaktree in October before the fund opened discussions with Richmond over a takeover deal in January.

Richmond's shareholders include leisure entrepreneur and Blackpool Tower owner Trevor Hemmings, who owns almost 13 per cent of the company.

Another major shareholder is Alastair Salvesen, who is part of the Edinburgh-based Salvesen logistics family and has an 11.58 per cent holding.

Oaktree said it had already received the support of shareholders accounting for 33.2 per cent of Richmond - including the Salvesen holding - although the undertakings are not binding if a higher competing offer emerges.

Richmond chairman Ross Warburton said the proposals represented good value.

He said: "The proposals provide shareholders with the ability to crystallise the value of their holdings at a significant premium to the historic share price."

The 750p-a-share recommended offer allows the group to pay a 3p-a-share interim dividend prior to completion, said Mr Warburton.

Richmond, which has its head office in Leeming Bar, near Northallerton, and has manufacturing facilities in Wigan and Leeds, was founded as a bulk ice-cream supplier in 1985 and expanded rapidly through acquisitions.

It bought the Nestle UK Ice Cream business in 2001 and has the exclusive right to use brands including Skinny Cow, Smarties, Yorkie, Fab and Rowntrees Fruit Pastil-lolly.

It is the largest manufacturer by volume of ice cream in the UK.

Last year, the group reported a rise in profits to £14.4m in the year to October 2.