Global bakery products supplier CSM has reached an agreement to acquire US bakery manufacturer Best Brands for a cash consideration of $510m.
The takeover of Best Brands, one of the largest premium bakery manufacturers in the US, would make CSM the "undisputed market leader in the North American bakery supplies market", according to the firm, with total sales in excess of $2.3bn.
The firm said the deal would help strengthen its position in the in-store bakery market a sector it has targeted for future growth.
"The acquisition of Best Brands fits our strategic journey, which started in 2005," said CSM CEO Gerard Hoetmer. "This acquisition will strengthen our ability to deliver organic growth in the North American market, in particular, as we leverage opportunities to grow the in-store and out-of-home markets."
Best Brands achieved sales of $538m in 2009, with around 75% of sales from the in-store arm of its business. Its product portfolio includes laminated dough, cakes, muffins, fillings and mixes. In addition to in-store bakeries, it supplies to foodservice, retail and wholesale customers.
The transaction is expected to be completed in March 2010.