CSM Bakery Solutions, a global supplier of bakery ingredients, products and services, has announced that it has reached an agreement to sell its European and International Bakery Ingredients business to an investment subsidiary of Investindustrial VII L.P.

This is the latest step in the evolution of CSM, which has been owned by investment funds affiliated with Rhône Capital since 2013.

As a stand-alone business, under Rhône’s ownership, CSM has expanded and strengthened its presence not only in Europe and North America, where CSM was originally present, but also in China and the Middle East, growing organically in a fragmented industry.

This is the third significant division to be successfully divested by Rhône since its initial investment.

Completion of CSM’s European International Bakery Ingredients its sale is expected to occur in the first quarter of 2021.

Marianne Kirkegaard, President and CEO of CSM, said: “This sale is a very important strategic move for us and allows us to focus on our core Bakery Products offering, in both Europe and North America.

“With the support of Rhône, we have managed to strengthen our position in all geographies for both Bakery Ingredients and Bakery Products and the sale of CSM’s European and International Bakery Ingredients business is a very natural next step for us.

“It marks an exciting new chapter for CSM and we look forward to seeing continued success for both businesses working as closely connected future partners. Investindustrial is growing its position in bakery ingredients and I am reassured that under their ownership, the European Bakery Ingredients business will solidify its deserved position and reputation in the industry.”

Gianpiero Lenza, managing director at Rhône, said: “We are proud of our partnership with Marianne Kirkegaard and CSM’s management team and of the strategic transformation of CSM’s European and International Bakery Ingredients business into an international market leader.”

“CSM has succeeded in a challenging sector and capitalizing on significant market opportunities. Our carve-out expertise has allowed us to create value for our investors systematically through strategic asset sales and will help the company position its remaining two businesses for continued growth and value creation.”