CSM to Sell Bakery Supplies Businesses

On 25 March 2013 CSM nv announced that agreement has been reached with affiliates of Rhône Capital LLC regarding the intended divestment of CSM’s Bakery Supplies businesses. 

The Bakery Supplies activities will be divested for an Enterprise Value of € 1,050 million.The businesses planned to be divested by CSM nv com prise the European Bakery Supplies and North American Bakery Supplies businesses (excluding Caravan Ingredients), as well as the international Bakery Supplies activities. Rhône Capital will also acquire the CSM brand name.

In 2012 these businesses had aggregate sales of €2,562 million. Total staff comprised 8,220 employees at end of 2012. The net cash proceeds from the divestment are estimated to be approximately €850 million. The difference between Enterprise Value and net cash proceeds, for the largest part, relates to liabilities such as pensions being transferred with the business.

CSM announced on 7 May 2012 that it intended to transform into a bio-based ingredients company focusing on the Purac and Caravan Ingredients businesses and divest its North American and European Bakery Supplies businesses (excludimng Caravan Ingredients).

As a next step, CSM will undertake consultative procedures with the works councils and labor unions where applicable. Completion is subject to regulatory clearance from competition authorities, in Europe and the United States. The intended divestment is expected to be completed in the third quarter.