Milling & Baking News - May 15, 2012 - 10

Business 

may expand Caravan’s geographic reach, he said. Purac, a biotechnology company involved in lactic acid and its derivatives, is leveraging its fermentation capabilities to expand beyond lactic acid into other bio-based alternatives for petro-chemically based products. The company had EBITA of €46.1 million in 2011, which compared with €22.3 million in 2007, and sales of €407.2 million in 2011, which compared with €310.1 million in 2007. Purac’s history with CSM dates to a joint venture in the 1960s, Mr. Hoetmer said.

“Some people have called it CSM’s jewel in the crown, but I would describe it as a great business, with very good prospects for growth in existing product lines such as lactic acid used for preservatives,” Mr. Hoetmer said. The planned divestitures mark a different strategy from the 1990s, a decade that saw CSM make several acquisitions. The company bought such companies as Karp’s, Westco Products, Henry and Henry, Ph. Orth and Kirkland & Rose. CSM in 1998 formed BakeMark Ingredients, which it described as a confederation

of its ingredient companies. In recent years CSM has made more divestitures. It sold its sugar confectionery division to CVS Capital Partners in 2005 and its sugar division to Cosun a year later. Now the company will lessen its focus on bakery supplies and turn its attention to bio-based ingredients. “This transformation now is the next major step in a journey we started seven years ago, to streamline and refocus a group that had diversified significantly with acquisitions in the late 20th century,” Mr. Hoetmer said. MBN are also capitalizing on greater catering sales, which experienced 19% growth during the period and will remain an important contributor to raising our average check on a go-forward basis.” In fiscal year 2012, Einstein Noah Restaurant Group expects 60 to 80 system-wide restaurant openings and capital expenditures of $24 million to $26 million. “Over the past several years, we have been working diligently to build a stronger foundation and enhance value for our stockholders by shifting to an assetlight expansion strategy, de-levering our balance sheet, inaugurating a dividend and embarking on a comprehensive cost-savings program,” Mr. O’Neill said. “After careful consideration, our board of directors believes that it is now an opportune time to review our strategic alternatives available to the company, including a possible business combination or sale of the company, as the next step in efforts to maximize value for all stockholders and positively position Einstein Noah for the future.” MBN acquisitions, Bimbo predicted the transactions would close shortly. Additional assets, including plants and routes, to be sold by Bimbo in connection with the divested brands were not detailed in the announcement. Bimbo still has several more brands to divest, including the Sara Lee and Earthgrains brands in California, Earthgrains and B.B.U.’s Mrs Baird’s brand in the Kansas City area; and Sara Lee’s Earthgrains brand in the Oklahoma City area. Bimbo said these divestitures “are pending.” MBN
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Einstein Noah to consider business combination, sale
LAKEWOOD, COLO. — The board of directors for Einstein Noah Restaurant Group, Inc. has authorized a review of strategic alternatives available to the company, including a possible business combination or sale of the company, to maximize value for all shareholders. As of March 31, Greenlight Capital, L.L.C. and its affiliates beneficially owned about 64% of the company’s common stock, which means Greenlight Capital has sufficient voting power, without the vote of any stockholders, to determine whether a change in control of the company may occur. Einstein Noah Restaurant Group said no timetable exists for the review, and there is no assurance the evaluation of alternatives will result in a sale of the company or in any other transaction. As part of the evaluation process, the board of directors selected Piper Jaffray to serve as its financial adviser and Bryan Cave HRO to serve as its legal adviser. Lakewood-based Einstein Noah Restaurant Group operates under the Einstein Bros. Bagels, Noah’s New York Bagels and Manhattan Bagel brands. As of April 3, there were 777 total restaurants in operation under those three brands. Einstein Noah Restaurant Group announced the strategic review on May 3, the same day it reported net income of $3,304,000, equal to 19c per share on the common stock, for the first quarter ended April 3, which marked a 174% increase from $1,168,000, or 7c per share, in the first quarter of the previous year. First-quarter total revenues of $104,873,000 were up 3.6% from $101,245,000 in the previous year ’s first quarter. System-wide comparable store sales increased 1.1%. “Our new smart choices menu and expanded specialty beverage platform is helping to facilitate topline momentum while we substantially improved gross margins through our ongoing cost efficiency program and sales leverage,” said Jeff O’Neill, president and chief executive officer of Einstein Noah Restaurant Group. “We

Regional bakers approved to purchase brands from Bimbo
MEXICO CITY — Pan-O-Gold Baking Co., Minn., and Schmidt Baking Co., Baltimore, have been approved as buyers of brands to be divested by Grupo Bimbo S.A.B. de C.V. as part of an agreement with the Department of Justice. On May 3, Bimbo said it had received an okay to sell the Earthgrains and Healthy Choice brands in Omaha to Pan-O-Gold
10 / May 15, 2012 Milling & Baking News

and to sell the Holsum and Milano brands in Harrisburg and Scranton, Pa., to Schmidt, a division of H&S Bakery, Inc., Baltimore. The approvals were part of an agreement between the government and Bimbo in connection with the Mexico City baking company’s acquisition of the North American Fresh Bakery business of Sara Lee Corp. With approval to make the

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Milling & Baking News - May 15, 2012

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