Dutch food group CSM said late Monday that it has agreed to sell its bakery supplies business to buyout firm Rhône Capital for $1.36 billion.
CSM was founded in 1919 as a sugar manufacturer and now sells a line of bakery products that includes bread mixes and frozen dough to companies in 28 countries. As a result of the transaction announced Monday, Rhône is the CSM brand name and a unit that supplies ingredients and frozen pastries to retailers in the United States and Europe. The Dutch company said it will now focus on "bio-based ingredients," including lactic acid products used in food ingredients, as well as chemical and pharmaceutical products.
The deal is expected to be completed in the third quarter of this year, pending regulatory approval in the U.S. and Europe.
Rhône is being represented on the matter by Dutch firm Stibbe and Sullivan & Cromwell. Amsterdam-based Stibbe partners Eva Das, Heleen Kersten, and Michael Molenaars are working on the deal for that firm.
The S&C corporate team includes partners Richard Pollack and Richard Morrissey, in New York and London, respectively, as well as Paris-based European counsel Joram Lietaert Peerbolte. Financing partners John Estes and S. Neal McKnight are also advising, along with tax partner S. Eric Wang, antitrust partner Juan Rodriguez, executive compensation and benefits special counsel Rebecca Coccaro, intellectual property special counsel Spencer Simon, and environmental special counsel Matthew Brennan.
The S&C associates working on the deal are Jinhee Chung, Lily Lo, Steven Mungovan, Brendan Franich, Adam MacLeod, M. Patricia Li, Evan Simpson, Judd Schlossberg, Ari Blaut, Jesse Dungan, Nicole van de Leuv, Bobby Yeh, Daniel Zharkovsky, Alice Lee, Raffaele DeMarco, Michael Orchowski, Kevin Salinger, and Michael Engel.
S&C advised Rhône in 2011 on its $1.3 billion purchase of Evonik Industries’s carbon black business.
CSM, meanwhile, has turned to Allen & Overy and Baker & McKenzie as its legal counsel on the sale, with the former taking the lead in advising the company in Europe and the latter taking the lead in the U.S. Amsterdam-based A&O corporate partner Maarten Muller leads his firm’s team on the matter, while U.S. M&A head Eric Shube is working on U.S. aspects of the transaction in New York. Senior associates Katinka Middelkoop, Rens Bondrager, and Arnold Keizer are also working on the matter, along with associates Marieke van der Holst and Jelle Krings.
The Baker team is being led by New York–based corporate partner James Colihan, who worked with tax partner Thomas May and associate Rekha Auld. Colihan advised CSM in 2010 on the $510 million purchase of bakery products company Best Brands from Value Creation Partners.