Investindustrial acquires CSM Ingredients to drive acquisition-led growth in Italy and China
CSM Ingredients comprises the Rhône Capital-backed CSM Group’s European and International activities and assets dedicated to bakery ingredients.
The division runs eight manufacturing facilities – including one in China and one joint venture in Tunisia – serving more than 45,000 customers in 100+ countries primarily in the artisanal sector and industrial channels with a wide product portfolio focused on bread ingredients, pastry mixes, bakery fats, fillings, glazes, toppings and icings
Key brands include Artisal, Arkady, Braims, Craigmillar, Marguerite, Masterline, MeisterMarken and Ulmer Spatz.
In Europe, its main markets are Germany, Italy, France, the UK and the Benelux region, generating annual revenue of approximately €500m.
Deep sector experience
Investindustrial – which has deep experience in the food & beverage production sector with numerous past investments, such as fruit-based ingredients company Italcanditi and chocolate maker Natra – is particularly interested in CMS Ingredients’ Italian footprint, being the second largest country in terms of sales.
The transaction also offers the UK-headquartered firm a platform for potential acquisition-led growth into China.
Earlier this week, Investindustrial launched a €600m vehicle in partnership with China’s sovereign wealth fund China Investment Corporation (CIC) and Italian lender Unicredit to invest in Italian mid-market businesses.
Andrea C. Bonomi, chairman of the Investindustrial Industrial Advisory Board, said, “CSM Ingredients is a leading player across Europe, with a growing international presence, over 400 salespeople and strong coverage of the region.
“This is a unique opportunity to become a long-term owner of a sizeable pan-European platform in the stable but still fragmented food ingredients sector.
“It is an ideal platform from which to pursue M&A-led growth and organically diversify further into higher value add ingredients and higher growth regions, including Italy and China.”
UBS (M&A) and Deloitte (Debt) acted as financial advisors for CMS Bakery Solutions, while Slaughter and May provided legal advice to Investindustrial on the transaction, which is subject to customary regulatory approval and expected to close by Q1 2021.
Founded in 1990, Investindustrial comprises a European group of independently managed investment, holding and advisory companies with €11bn of raised fund capital, with offices in the UK, Spain, US, China, Switzerland and Luxembourg.