CSM acquires certain specialty ingredients businesses from ADM
January 31, 2007
by Josh Sosland
DIEMEN, THE NETHERLANDS — Building on its Caravan Ingredients product portfolio, CSM n.v. has acquired the Arkady and distilled monoglycerides businesses of Archer Daniels Midland Co. for $55 million.
The acquired businesses, which have annual sales of about $50 million, market bakery enhancers, mixes, enrichment and monoglycerides. The businesses are part of ADM’s larger Specialty Food Ingredients division.
No production assets were included in the transaction. CSM said production will be handled within existing Caravan Ingredients facilities.
ADM described the products it is selling as "a small portion of ADM’s Specialty Food Ingredients business."
"ADM will continue to provide its customers with premier food ingredients for the baking industry such as flour, sweeteners, oils, emulsifiers and proteins," the company said.
Mike Baroni, president — Specialty Food Ingredients, added, "We are concentrating on growing our company through areas where our current expertise and market position add the greatest leverage for our shareholders."
Through acquisitions and closings, CSM has been fine-tuning its North American business over the past two years, a business that was built over a relatively short period of time during the 1990s through a blizzard of acquisitions.
"The acquisition of the ADM specialty ingredients business is in line with our strategy of making bolt-on acquisitions that can be easily integrated, strengthen our market position and bring returns in excess of our cost of capital," Gerard Hoetmer, chief executive officer of CSM said. "This acquisition complements C.I.’s existing business and will enhance the service package to our customers."
Caravan Ingredients is the newly merged and American Ingredients with headquarters in Lenexa, Kas.
CSM producers and distributes bakery products and food ingredients globally.