Rhône Capital buys bakery businesses for €1.05bn

Carmen Reichman
26 March 2013

Tweet
Facebook
LinkedIn
Google plus
Send to

Rhône Capital has agreed to take private the bakery supplies businesses from listed Dutch food ingredients group CSM for an enterprise value of €1.05bn.

Rhône's acquisition of CSM's bakery businesses will leave the Dutch group to focus on its bio-based ingredients business. The net cash proceeds for CSM will amount to €850m, taking into account liabilities such as pensions.

The businesses taken over by Rhône comprise the European Bakery Supplies and North American Bakery Supplies businesses (excluding Caravan Ingredients), and the international Bakery Supplies activities. The GP will also acquire the CSM brand name.

The deal came about after CSM announced in May 2012 that it intended to restructure and transform into a bio-based company, focusing on its Purac and Caravan Ingredients businesses and shedding the bakery units.

Rhône emerged as the new owner following a first round of non-binding offers and consecutive private talks. The GP convinced the vendor with an attractive offer and its depth of interest in the business, the vendor said.

Rhône will take the bakery business private while the remainder of CSM remains a listed company. The GP plans to build on the businesses's product innovation capabilities and customer relationships, and support existing management in its global growth.

The transaction is expected to be completed in the third quarter.

Company
CSM's bakery businesses produce and distribute a range of bakery products and ingredients for artisan and industrial bakeries, and for in-store and out-of-home markets.

The firms operate in business-to-business markets throughout the world, in a total of 28 countries. In 2012 the bakery businesses had aggregate sales of €2.6bn and an aggregate EBITA of €106.8m. At the end of 2012, the companies had a total staff of 8,220 employees (full-time equivalent).

CSM is listed on the NYSE Euronext Amsterdam.

People
Steven Langman is managing director of Rhône.

Advisers
Vendor – KPMG, Patrick de Graaf (Financial due diligence); Deloitte, Jasper Knol Bruins (Corporate finance); URS, Jan Strassenburg (Environmental due diligence); Bain & Company, Marc Lino (Commercial due diligence); Allen & Overy, Maarten Muller (Legal); Baker & McKenzie, James C Colihan (Legal); PwC, Mischa Borst (Pensions due diligence); Troostwijk, Marcel Juliard (Financial due diligence).