CSM has agreed the sale of its Bakery Supplies businesses to private equity firm Rhône Capital LLC for €1.05bn (£900m).
The Netherlands-based firm announced the move this morning (25 March), which includes the business’ European and North American activities, excluding Caravan Ingredients, as well as its international Bakery Supplies activities. It was also revealed that international firm Rhône Capital will acquire the CSM brand name as part of the deal.
In a statement, CSM said the board were of the opinion that the transaction was in the best interests of its stakeholders, including employees and customers, and would take consultative procedures with work councils and labour unions where applicable.
The firm further added that the completion of the deal is subject to regulatory clearance from competition authorities in Europe and the US, but expected the transaction to be complete during the third quarter.
Gerard Hoetmer, chief executive of CSM, said: “The intended divestment of our Bakery Supplies businesses is a milestone in the development of the company, and an essential step towards our goal of transforming into a leading supplier of innovative bio-based ingredients and solutions.
“Just as important, as part of Rhône Capital, the Bakery Supplies businesses, continuing with our highly appreciated workforce, will have more opportunities to develop their strong market positions in Europe and North America, build a strong presence in new markets, and lead the trend towards further industry consolidation.”
CSM said that net cash proceeds from the sale were estimated to be approximately €850m (£726m), with liabilities such as pensions being transferred with the business.
The company added that, in 2012, the Bakery Supplies business had accumulated sales of €2.56bn (£2.2bn), and aggregate Ebitda, excluding one-off costs, of €106.8m (£91.2m). CSM said that the total number of employees at the Bakery Supplies businesses were 8,220 by the end of last year.
Steven Langman, managing director of Rhône Capital, said: “We are proud to succeed CSM in stewardship of the Bakery Supplies businesses. We look forward to building on the foundation of the Bakery Supplies businesses’ product innovation capabilities, valued customer relationships and skilled workforce, and to support existing management in its global growth.”