DIEMEN, THE NETHERLANDS — CSM, the world’s largest supplier of bakery products, has agreed to acquire Minnetonka, Minn.-based premium bakery manufacturer Best Brands for $510 million in cash.
The acquisition of Best Brands, which has a leading position in value-added frozen products sold to in-store bakeries, is expected to make CSM the leader in the North American bakery supplies market with total sales of $2.3 billion. The transaction is scheduled to be completed in March.
“The acquisition of Best Brands fits in our strategic journey which started in 2005,” said Gerard Hoetmer, chief executive officer of CSM. “In these last four years we have created an efficient and focused company, resulting in global market leadership positions in both Bakery Supplies and Purac. In our strategy we have expressed our consolidator role in the bakery supplies market after having built the capabilities to grow organically by leveraging our innovation power and exploiting our economies of scale. The Best Brands acquisition fully fits within our stated strategy as it strengthens our leadership in our core markets, brings complementary products in an extended customer portfolio and expands our baking capabilities. 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 product portfolio includes laminated dough, cakes, muffins, fillings and mixes, and the company serves food service customers and retail and wholesale bakeries through three distribution centers. The company, which also provides product under the Multifoods brands, has six major production facilities across the United States.