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Netherlands-based CSM to divest bakery supplies business for €1.05bn

RBR Staff Writer Published 26 March 2013

Netherlands-based bakery group CSM has agreed to divest its bakery supplies business to an affiliate of private equity firm, Rhône Capital, for €1.05bn.

CSM's Bakery Supplies businesses comprises the European Bakery Supplies and North American Bakery Supplies businesses, as well as the international Bakery Supplies activities

The businesses to be divested had posted total sales of €2.56bn and earnings before interest, taxes and amortization, excluding one-time items, of €106.8m in fiscal 2012.

The sale includes the CSM brand name although Caravan ingredients are excluded from the transaction.

CSM expects to complete the transaction in the third quarter of the 2013 fiscal with the net cash proceeds from the divestments to be in the region of €850m.

CSM CEO Gerard Hoetmer "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 biobased 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."

The company currently operates in the business-to-business markets of Europe, North America, South America, Asia and Africa.