Private-equity group Rhône Capital has agreed to buy CSM's bakery supplies businesses in a deal worth €1.05 billion ($1.36 billion), CSM said today.
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 €850 million 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 totaled €2.56 billion, and aggregate EBITDA (excluding one-off costs) amounted to €106.8 million.
Steven Langman, managing director of Rhône Capital, says 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,” Langman says.