CSM to sell part of its Dutch bakery activities

De Goede produces ready-made patisserie products such as cream horns, flan and gateau bases, and Christmas wreaths.

08/12/05 CSM is to sell part of its bakery activities in The Netherlands. CSM is engaging in negotiations with Koninklijke Smilde on the sale of part of the activities of its subsidiary Unipro Nederland. The negotiations have made such good progress that a final agreement is expected shortly. The transaction involves the Unipro activities that fall under Jantje de Goede. De Goede produces ready-made patisserie products such as cream horns, flan and gateau bases, and Christmas wreaths. The parties have agreed in principle on a takeover sum of EUR 3.6 million. The definitive sum will be decided on the basis of the balance sheet as at the transfer date. CSM expects to complete the deal at the start of 2006. The factory premises are not included in the planned sale, but will be rented by Koninklijke Smilde for the longer term.

The book profit is approximately EUR 1.5 million. The turnover from the activities is around
EUR 7.5 million. All the factory workers (approximately 60) will be transferred to the new owner. The management and field staff will remain in the employment of CSM, which will continue to operate in the Netherlands with, amongst others, Waldkorn and Molco, in the segments which are strategically important to it. The information and consultation procedures with the employee organizations and the works council have been started.

Gerard Hoetmer, CEO at CSM said, “CSM is working on a plan to improve its profitability. This announcement is in line with earlier announcements by CSM on its intention to strengthen its strategic core activities in bakery products and food ingredients.” Jeroen van Douveren, Director of the Koninklijke Smilde Bakery commented, “The acquisition of De Goede’s activities means an extra impulse for our Business Unit. By aligning these activities as much as possible with our existing bakery operations in the Netherlands, including Van Welzen in Bodegraven and Pruvé in Edam, we expect to realize synergy benefits in production, marketing, and distribution.”