New CSM acquisition in premium market segment

By Karen Willmer

- Last updated on GMT

Related tags Csm Marketing

Dutch-based bakery supplier CSM announced today its acquisition of
UK-based Kate's Cakes in a deal worth £32.5m (€48m).

Kate's Cakes supplies premium cakes, muffins, cookies and deserts to the food service and out-of-home markets, and this acquisition will support CSM's growth strategies within these premium segments, the company said.

"This acquisition, together with the recent acquisition of Titterington's in the US, will create additional value for CSM in these premium market segments," Gerard Hoetmer, CSM's chief executive officer, said.

"It allows us to more quickly become a worldwide partner for the leading companies in the fast growing high quality food service and out-of-home market."

In June, the company acquired US based scone and muffin distributor, Titterington's, in a $23m (€17m) deal, and has been continually strengthening its bakery portfolio within the past year.

In 2006 the company announced it will focus on the bakery segment as a strategic growth area and acquired CGI Desserts in a $70m deal.

Sales for Kate's Cakes amount to £23m and showed double didgit growth over the last few years, CSM said.

The deal involves £20.5m for the shares of Kate's Cakes plus £12m to cover the company's debt.

CSM has been involved in a strong period of restructuring within the past year in order to focus on its key markets as part of its so-called 3-S programme.

In the company's 2006 annual report, CSM said it expected to make €30m of savings within 2007 through the restructuring programme.

CSM claims to hold second place in the North American bakery ingredients market, through its 7 percent share of the total $21bn (€16bn) market.

Related topics Business

Related news

Show more

Follow us


View more