Dutch-based international food ingredients company CSM has reached an agreement with Unilever on the acquisition of its bakery ingredients business in Hungary.
The value of the acquisition, which will be effective as of 31 May 2003, is €5.1 million.
The acquisition covers Unilever's sales activities in fats and other bakery ingredients and products in Hungary, which are sold to wholesalers and industrial and artisan bakers.
The business in question generates an annual turnover of more than €13 million.
The deal could be potentially very lucrative for CSM. Unilever is the largest supplier of bakery fats to the Hungarian market, and provides a range of products mainly under the Meister label.
Unilever's activities will be combined with the business operations of CSM Bakery Supplies Europe in Hungary and will operate under the name BakeMark Magyarország.
As part of the deal, 12 employees are to be transferred from Unilever to CSM.
"This acquisition will broaden our product portfolio in the region and enable us to build on our existing market position in Hungary and neighbouring Central European countries," said Jaap Vink, chief executive of CSM.
"This is an increasingly important area for us now that countries such as Hungary are about to become full member of the EU." The acquisition will be financed from readily available cash resources.