CSM Bakery Solutions is to sell its European and International Bakery Ingredients business to focus on its bakery products offering.
The business has been bought by an investment subsidiary of Investindustrial VII L.P in what CSM describes as the latest step in its evolution. The completion of the sale, which will include the international operations, is expected to occur in the first quarter of 2021.
CSM has been owned by investment funds affiliated with Rhône Capital since 2013 under which it has ‘expanded and strengthened’ its presence in Europe and North America as well as in China and the Middle East. This is the third significant division divested under its ownership.
The European and International Bakery Ingredients business, which will continue to operate under the CSM Bakery Solutions name, has shown strong resilience throughout Covid-19, according to CSM, with its bread ingredients and bakery fats driving continued growth. Other products under the ingredients business include mixes, fillings, icing, glazes and toppings as well as the Craigmillar brand.
While the transition takes place, the existing European management team – led by sales & chief commercial officer, Europe, John Lindsay – will continue in their roles.
Following the completion of the sale, CSM and Rhône will retain two businesses: the North America business, operated as Brill, Inc., and the European Products business, which will be rebranded with a to be determined identity following the completion of the sale. The company said the sale of the ingredients division will help position the remaining two businesses for continued growth.
The sale was described by CSM president and CEO Marianne Kirkegaard as a “very important strategic move” which allows it to focus on its core bakery products offering in Europe and North America. Products include cakes, doughnuts, muffins, brownies, speciality bread and viennoiserie.
“It marks an exciting new chapter for CSM and we look forward to seeing continued success for both businesses working as closely connected future partners. Investindustrial is growing its position in bakery ingredients and I am reassured that under their ownership, the European Bakery Ingredients business will solidify its deserved position and reputation in the industry,” she said.
Gianpiero Lenza, managing director at Rhône, added: “CSM has succeeded in a challenging sector and capitalizing on significant market opportunities. Our carve-out expertise has allowed us to create value for our investors systematically through strategic asset sales and will help the company position its remaining two businesses for continued growth and value creation.”
Rothschild & Co served as financial advisor to CSM while Sullivan & Cromwell LLP provided legal counsel and UBS served as financial advisor. Meanwhile, Slaughter and May provided legal counsel to Investindustrial.