CSM sells US bakery ingredient group
North American bakery ingredients operations to Kerry Group, the
company revealed today.
The sale of QA Products comes as part of CSM's plans to streamline its business. The transaction, which was completed yesterday, will see the division come under the wing of rival ingredients firm Kerry Group. Located in Elk Grove Village, Illinois, QA Products manufactures decorations for the food industry. Its products include toppings and inclusions that are used in baked goods and snacks to add color, texture and flavor. QA Products annual sales amount to approximately $35m. CSM said the division's 165 employees will be transferred to the new owner. "The sale of QA Products is in line with our strategy to further focus on core activities and growth markets. Within Kerry Group, QA Products will be offered new opportunities to develop in specific markets," said Reinoud Plantenberg, member of the CSM Board of Management and responsible for Bakery Supplies North America. The Kerry Group was not available for immediate comment. CSM reorganized its bakery supplies business in Europe earlier this year in order to focus upon its core segments. The restructuring program led to cost savings amounting to €43m ($62m) in 2006, resulting in cumulative savings of €62m ($89m). Restructuring costs totaled €24m ($35m) in 2006. Recent moves by CSM in the US have included the transfer of the production of subsidiary H.C. Brill will be transferred to other CSM Bakery Supplies North America facilities. It also announced it was to acquire North American bakery supplier, Titterington's, in a $23m deal. CSM claims to hold second place in the North American bakery ingredients market, through its 7 percent share of the total $21bn market.
