CSM completes US acquisition
acquisition of Carpro, a leading manufacturer of bakery supplies in
the United States. The buy includes all of Carpo's current
production facilities in the US.
CSM, the Netherlands-based bakery group, has completed the acquisition of Carpro, a leading manufacturer of bakery supplies in the United States.
The acquisition, which was announced on 8 January 2003, was recently confirmed and the deal has now been signed. CSM said that the arrangement includes all the company's production facilities and capacity and that it will immediately contribute to its earnings in the 2003 calendar year.
The total acquisition price is $302 million (€282m). The two main operating companies of Carpro are H.C. Brill and Caravan Products with total annual sales of approximately $300 million.
Brill employs 670 personnel and has four factories, three of which are based in Georgia and one in Utah. Caravan operates two factories located in New Jersey and employs 280 staff. Brill and Caravan will continue to operate as operationally autonomous companies within CSM Bakery Supplies North America. The relevant authorities have cleared the transaction.
CSM is the world's largest specialist in ingredients and convenience products for the bakery sector. By acquiring Carpro, CSM says that it is considerably strengthening its position in the North American market as regards product portfolio, technology and market penetration.
With the addition of Carpro, CSM Bakery Supplies North America will generate annual sales of approximately US$1.4 billion.
Steve Moon, managing director at Arkady Craigmillar, commented on CSM's acquisition of Carpro: "One of CSM's core objectives is the continued development of its international business via targeted acquisitions throughout Europe and North America. The completion of the Carpro deal means that we will be able to increase our range of authentic American bakery ingredients to UK customers. This is welcome news given the enduring popularity of existing ranges like Karp's and the 'The Simpsons'.
"High quality ingredients from Carpro's two main operating companies, H.C. Brill Company and Caravan Products Company will be available to customers through current supply arrangements in the short term, although we are looking at the potential synergies with Arkady Craigmillar's range in the UK," he added.
CSM markets food ingredients and sugar confectionery, as well as sugar and lactic acid. Including Carpro the company has annual sales of €3.8 billion and employs approximately 14,000 staff, operating in Europe, the United States, Canada, Brazil and Asia.
