Diemen 2005-03-01 - CSM announces that it has reached definitive agreement with CVC Capital Partners on the sale of its Sugar Confectionery Division. The consultative procedures with unions and the representative bodies have been completed. The EU competition authority in Brussels approved the transaction.
The transfer will take place on 7 March 2005. The selling price is EUR 850 million. The definitive acquisition price will be determined on the basis of the balance sheet as at the transfer date.
CSM Sugar Confectionery has an annual turnover of EUR 750 million and a workforce of approximately 4,300. The division has six operating companies and operates with strong brands, including Läkerol, Dietorelle, Malaco, RedBand, Sportlife, Jenkki and Lutti, in various European countries and Asia.
The sale of the Sugar Confectionery Division marks a major step in CSM’s strategy to concentrate on its business-to-business operations in the markets for bakery products and food ingredients. CSM is bringing more focus into its portfolio with a view to further growth, also in the form of new products, customers and geographies. This will enable accelerated growth in Biochemicals and further improvement in the profitability of Bakery Supplies.
CSM will use the proceeds from the sale to, amongst others, repay debts and possibly to repurchase company shares.
CSM announced the sale of the Sugar Confectionery Division on 16 December 2004.