Diemen / NL. (csm) Dutch CSM N.V. announces that agreement has been reached with affiliates of Rhône Capital L.L.C. 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 EUR. This divestment is an important part of CSM´s strategy to transform into a bio-based ingredients company.
The businesses planned to be divested by CSM comprise 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 EUR and aggregate Ebitda excluding one-off costs of 106,8 million EUR. Total staff comprised 8’220 employees (FTE) at end of 2012. The net cash proceeds from the divestment are estimated to be approximately 850 million EUR. The difference between Enterprise Value and net cash proceeds, for the largest part, relates to liabilities such as pensions being transferred with the business.
The Board of Management and the Supervisory Board of CSM are of the opinion that this transaction is in the best interests of all stakeholders, including employees, shareholders and customers. As a next step, we 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 transaction is expected to be completed in the third quarter.
This transaction is a significant step on the Company´s path to transform into a bio-based ingredients company, which CSM announced in May 2012. Shareholder approval for the transformation of the Company and divestment of its Bakery Supplies businesses was obtained at an Extraordinary General Meeting of Shareholders, held on 03 July 2012.
Commenting on this announcement, Gerard Hoetmer, CEO of CSM said: «The intended divestment of our Bakery Supplies businesses is a milestone in the development of the Company and an essential step towards our goal of transforming into a leading supplier of innovative biobased ingredients and solutions. Just as important, as part of Rhône Capital, the Bakery Supplies businesses, continuing with our highly appreciated workforce, will have more opportunities to develop their strong market positions in Europe and North America, build a strong presence in new markets and lead the trend towards further industry consolidation».
Steven Langman, Managing Director, of Rhône Capital commented: «We are proud to succeed CSM N.V. in stewardship of the Bakery Supplies businesses. 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».
