CSM Bakery Solutions announces agreement for sale of its BakeMark business
CSM Bakery Solutions, a global leader in bakery ingredients, products and services, announced it had reached an agreement for the sale of its BakeMark business to Pamplona Capital Management.
The agreed upon sale is an important step in advancing CSM's strategy to focus on its core business in Europe and North America, according to CSM's president and CEO Marianne Kirkegaard.
"We have always had great appreciation for the value of the BakeMark business but this sale will help us support our goal of further strengthening our core business in Europe and North America by focusing on our value added bakery products and ingredients portfolio," she said. "Under Pamplona's ownership, BakeMark can further strengthen its strong position and reputation as the industry's supply and distribution market leader in North America."
Based in Pico Rivera, California, BakeMark provides distribution services through a network of 25 distribution centers and three manufacturing facilities across the United States and Canada. BakeMark offers a diversified line of products, ingredients and supplies to the food industry under brands that include Westco, Trigal Dorado and BakeSense.
William Pruellage, a Partner at Pamplona, expressed his confidence in BakeMark's future.
"BakeMark is a market-leading specialty distribution platform serving as the premier bakery ingredient supplier in North America," he said. "We believe BakeMark is well positioned to succeed as a stand-alone entity and capitalize on new growth opportunities. We look forward to supporting Jim Parker, the president and CEO of BakeMark, and the rest of the company's exceptional management team to build on its long history of providing trusted and valuable service to the food industry."
Parker, commenting on the sale, expressed similar optimism.
"We are excited to be partnering with Pamplona for the next stage of BakeMark's growth," he said. "As an independent company with the support of Pamplona, BakeMark is ideally positioned to continue providing customers with quality products and full-service distribution capabilities."
Terms of the deal, which was facilitated by Harris Williams & Co., an M&A advisory firm, were not disclosed. Sullivan & Cromwell LLP provided legal counsel to CSM.
The BakeMark investment is being made from Pamplona's fifth private equity fund, Pamplona Capital Partners V, L.P., a $3.4 billion investment vehicle raised in 2017. Barclays is serving as Pamplona's financial advisor. Pamplona received legal advice from Goodwin Procter LLP. Committed debt financing for the transaction has been provided by the Senior Direct Lending Program, a joint venture between Ares Capital Corporation and Varagon Capital Partners, and Northwestern Mutual Capital.