CSM said on Monday it planned to sell its North American and European bakery supplies division to focus on areas where stronger growth is forecast.
The division booked sales of just over €2bn last year but needs capital to stay on top of the expected wave of market consolidation, the company said.
The Purac operation, which focuses on food preservation, green chemicals and polymers produced from lactic acid, also offers attractive investment potential but the company cannot afford to focus on both, the company said in a statement.
‘CSM therefore proposes to start a major divestment process for the North American and European Bakery Supplies businesses that will enable the group to redeploy capital into activities better able to deliver higher growth and enhanced shareholder value,’ the statement said.
CSM’s share price rose 25% on the Amsterdam stock exchange shortly after the announcement.