FDBusiness.com

Shareholders of CSM have approved the proposed strategic transformation of the group into a bio-based ingredients company. CSM announced on 7 May, 2012 its intention to transform the company into a bio-based ingredients company comprising its Purac and Caravan Ingredients businesses. This will involve the divestment of CSM’s North American and European Bakery Supplies businesses.

Purac is an innovative biotechnology company. It is the world market leader in lactic acid and its derivatives. Purac is leveraging its fermentation capabilities to expand beyond lactic acid into other bio-based alternatives for petrochemically based products. Caravan Ingredients has leading positions in the North American markets for specialty ingredients including lactic acid based emulsifiers, functional blends containing enzymes, and fortification ingredients.

CSM Bakery Supplies is the largest supplier of bakery products worldwide. CSM produces and distributes an extensive range of bakery products and ingredients for artisan and industrial bakeries and for in-store as well as out-of-home markets.

According to CSM, Bakery Supplies requires funding to participate in the market consolidation, and bio-based ingredients also has attractive opportunities to invest in value creating, high growth activities. In the longer term CSM does not have sufficient financial resources to exploit both. CSM therefore will start a major divestment process for the North American and European Bakery Supplies businesses that will enable the group to redeploy capital into its remaining activities.