DIEMEN, THE NETHERLANDS — Rhone Capital L.L.C. has reached an agreement to acquire the bakery supplies businesses of CSM n.v. for approximately $1,361 million.
The acquisition includes the European Bakery Supplies and North American Bakery Supplies businesses (excluding Caravan Ingredients) as well as the international bakery supplies activities. Rhone Capital also will acquire the CSM brand name. The businesses Rhone will acquire had aggregate sales of about $3,317 million in 2012.
“The intended divestment of our bakery supplies businesses is a milestone in the development of the company and an essential step toward our goal of transforming into a leading supplier of innovated bio-based ingredients and solutions,” said Gerard Hoetmer, chief executive officer of CSM. “Just as important, as part of Rhone 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 first announced plans to divest the businesses in May 2012 in an effort to transform into a bio-based ingredients company with a focus on the Purac and Caravan Ingredients businesses.
The transaction is expected to be completed during the third quarter and is subject to regulatory approval in the United States and Europe.
“We are proud to succeed CSM n.v. in stewardship of the bakery supplies businesses,” said Steve Langman, managing director of Rhone Capital. “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.”