Bakery and ingredients group CSM has reduced the valuation of its European bakery supplies unit, one of the assets up for sale.

CSM booked a non-cash impairment charge of EUR165m (US$213.7m) after assessing the value of the Bakery Supplies Europe unit.

“All relevant information was taken into account in estimating the appropriate valuation. Factors such as the development of the results, market developments and information available from the divestment process were part of this,” a spokesperson for the group told just-food today (14 March).

CSM put its bakery business in Europe and North America up for sale last year in a bid to increase its focus as a ingredients company.

“We have written down on BSEU, but we found that the fair value of the combined fair value of the bakery businesses held for sale [proceeds to] exceed the carrying value, i.e. the current value on the balance sheet,” the spokesperson emphasised.

The spokesperson added CSM is “progressing” with the sale of its bakery interests “according to original expectations and timetable”.

The company has not revealed when it expects to complete the sale. However, speaking earlier this week during a conference call, CEO Gerard Hoetmer said the sale was one of CSM’s “major tasks” for 2013.
 
“We expect to divest our bakery supplies business, and we are working hard to further that process,” he said.