As part of the deal, Ruby Acquisitions, a company controlled by Oaktree, will pay 750p a share for Richmond Foods, which makes own label, Nestlé-branded and Skinny Cow ice cream products.
Oaktree said that after the deal is completed it would combine Richmond with its European ice cream business Roncadin.
Ross Warburton, chairman of Richmond Foods, said: “We believe that the proposals represent good value for the business and its prospects, and after careful consideration, the independent directors are unanimous in recommending shareholders to vote in favour of the proposals.”
Caleb Kramer, managing director of Oaktree, added: “Our goal is for Richmond to remain focused on its core geographical market, but, once combined with Roncadin, to leverage both companies' strong market positions and reputation for high-quality products to enable us to serve customers on a pan-European basis.”
Richmond Foods revealed last month that it had received a bid approach that may or may not lead to an offer being made for the company.