Global bakery product supplier CSM has reached an agreement to acquire US bakery manufacturer Best Brands for a cash consideration of $510 million.
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 $2.3 billion.
CSM said it will help strengthen its position in the segments and products that it had targeted for future growth, particularly in the in-store bakery market.
“The acquisition of Best Brands fits in our strategic journey which started in 2005,” commented 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 in the in-store and out-of-home markets.”
Best Brands achieved sales of $538 million 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.