Investindustrial to Acquire CSM Ingredients
One year after Italcanditi’s operation, Investindustrial further strengthens its presence in the food ingredients sector with CSM Ingredients.
Investindustrial has signed an agreement to acquire the business of CSM Ingredients, from the CSM Bakery Solutions Limited Group and its subsidiaries. CMS is the producer and distributor of bakery ingredients, most of all for the traditional craft trade (pastry and bakery) and for the industrial channels. CSM has a turnover of about 500 million euros. With eight production plants, a joint venture in Tunisia and more than 400 vendors, it is present, in particular, in Germany, Italy, France, United Kingdom and Benelux.
The operation represents an opportunity to create a European platform that will enable CSM Ingredients to strengthen its role in the food ingredients sector.
Italy, a particularly fragmented market characterized by small operators, will be the key area to direct this expansion.
The goal is to establish a pan-European group with an increasingly significant role in Italy. It is estimated that sales can more than double grow, compared to the current situation.
With a plant in Crema, Italy represents the second sales market for CSM Ingredients, with about 70 million euros in 2019.
Investindustrial has a strong presence in southern Europe and has a deep experience in the food and beverage industry, with numerous past and current investments including chocolate producer Natra and Italcanditi.
China-Italy Industrial Cooperation Fund (CIICF), the new fund created in partnership by Investindustrial, together with China Investment Corporation and UniCredit, attends the operation. The fund’s participation in the operation, with an initial allocation of EUR 600 million, will ensure further support to the planned strengthening plans in Italy and to the expansion in Asian markets.
The transaction is subject to the usual regulatory approval and is expected to be finalized by the first quarter of 2021.
Andrea Bonomi, President of Investindustrial’s Industrial Advisory Board, commented: “CSM Ingredients is a leading player in Europe, with a growing international presence. The acquisition of CSM represents a unique opportunity to develop a pan-European platform in the food ingredients sector, a solid but still too fragmented sector. We consider CSM an ideal platform to start a growth plan”.
Investindustrial was assisted by UBS (M&A) and Deloitte (debt) as financial advisors, and Slaughter & May as legal advisors.