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CVC wins €850m auction for Dutch confectioner CSM

Pan-European buy-out firm CVC has won the auction for the confectionery division of Dutch firm CSM with a bid of around €850m. The deal is expected to close in the first quarter of next year. The business had attracted interest from a number of private equity firms, including PAI and Nordic Capital.

CSM Sugar Confectionery has an annual turnover of €750m and employs 4,500 people. It operates in Europe and Asia and owns a number of brands, including Lakerol and Malaco. The parent has sold the business to concentrate on its business-to-business activities in the bakery supplies and foods ingredients markets.

CSM said in a statement, 'The Sugar Confectionery Division will benefit from being part of CVC Capital Partners, which offers greater opportunities for the growth of the confectionery activities than alongside the other divisions of CSM with their strong business-to-business orientation.'

CVC is one of the most active of the large pan-European buy-out firms. It has done more than six deals this year alone, including the £1.75bn acquisition of motoring services group the AA in conjunction with Permira. It has a particularly strong track record in the Benelux.

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