CSM Bakery Solutions has agreed to sell its European and international bakery ingredients business to a subsidiary of investment firm Investindustrial.
The divestiture marks the latest step in the evolution of CSM and will reportedly enable it to focus on strengthening its position as a bakery products company.
As a stand-alone business – under global private equity firm Rhône’s ownership – CSM says it has expanded and strengthened its presence for both bakery ingredients and bakery products not only in Europe and North America, where it was originally present, but also in China and the Middle East.
To date, CSM serves more than 45,000 customers in over 100 countries and offers a wide portfolio of well-recognised brands providing specialised ingredients such as dry mixes, fillings and icings and finished products including cakes and muffins.
The recently-announced sale marks the third significant division to be successfully divested by Rhône since its initial investment in 2013, including its BakeMark business to Pamplona Capital Management three years ago.
Following completion of the sale, the European bakery ingredients business will continue to operate under the CSM Bakery Solutions tradename.
Meanwhile, CSM and Rhône will retain two distinct businesses: the North America business, operated as Brill and the European products business, which will be rebranded with a new identity that is yet to be determined. The sale will enable the remaining two businesses to continue to drive growth.
“This sale is a very important strategic move for us and allows us to focus on our core bakery products offering, in both Europe and North America,” said Marianne Kirkegaard, president and CEO of CSM.
She added: “It marks an exciting new chapter for CSM and we look forward to seeing continued success for both businesses working as closely connected future partners. Investindustrial is growing its position in bakery ingredients and I am reassured that under their ownership, the European bakery ingredients business will solidify its deserved position and reputation in the industry.”
The completion of the transaction is expected to occur in the first quarter of 2021. Terms of the deal were not disclosed.
© FoodBev Media Ltd 2019