Private-equity group Rhône Capital has agreed to buy CSM‘s bakery supplies businesses in a deal worth EUR1.05bn (US$1.36bn), the Dutch firm said today (25 March).
The unit was put on the block last year, when CSM announced a strategy to become a bio-based ingredients firm. Proceeds from the sale are expected to total EUR850m and Rhône will also assume various liabilities, such as pension costs.
The sale includes CSM’s European, US and international bakery supplies operations, as well as the CSM brand name. In 2012, sales from the units totalled EUR2.56bn and aggregate EBITDA, excluding one-off costs, amounted to EUR106.8m.
Steven Langman, MD of Rhône Capital, said the investment vehicle aims to support the global growth of the business. “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.”