CVC Capital Partners has agreed to pay approximately €850 million for the sugar confectionary division of CSM, an Amsterdam-headquartered producer of baking ingredients. The sweets division has 4,300 staff and annual sales of €750 million.
CSM said it expected to close the deal in the first quarter of 2005. At that point, the exact price of the asset will be determined depending on its balance sheet on the date.
CVC will be funding the deal from the $4 billion European buyout fund it closed in 2000.
Lehman Brothers acted as financial advisor to CVC.
According to Financial News, CVC emerged as CSM’s preferred buyer after an auction in which 3i, Permira, Nordic Capital and PAI also participated.