CSM Rebrands to Corbion
ENGLAND—CSM rebranded with a new company name, Corbion, and logo at the Capital Markets Day in Amsterdam on June 18, 2013.
The company's new name and strategy mark the latest stage of an ongoing transformation into a leading provider of biobased products, with activities in biobased food ingredients and biochemicals.
In biobased food ingredients, Corbion offers high-value added ingredients to food companies, helping them solve their food integrity issues such as food safety, microbial spoilage, taste and smell. Corbion is also strong in the bakery and meat sectors. Organic growth will be driven by leveraging its leadership positions into adjacent markets, and will be supported by selective M&A.
"Our new name and logo signify the next phase in the development of our company," said CEO Gerard Hoetmer. "We will leverage our proprietary technologies and intimate understanding of customers and consumers to further develop our market positions in biobased products. In short, we create value for our customers through our biobased products, designed by science, powered by nature and delivered through our dedication. This will in turn create value for our shareholders."
Average organic sales growth for Corbion is targeted at 6 to 9 percent compound annual growth rate (CAGR). Within that, average organic sales growth for the biobased food ingredients division is targeted at 3 to 5 percent.
Investments in long-term innovation, the supply chain and market access will increase significantly in the coming years, according to the company. The company expects to be net cash/debt neutral by the end of 2013, taking into account the intended distributions to shareholders. Thereafter, Corbion targets a long-term capital structure of 1.5 times net debt/EBITDA.
Corbion intends to return €250 million to shareholders in 2013 after completion of the divestment of the bakery supplies business, which is by means of a special all-cash dividend of €0.70 per share (€50 million in total), and the remainder through a share buy-back. Details of the mechanism for the planned share buy-back will be announced after completion of the divestment of the bakery supplies businesses, which is expected in early Q3 2013. Going forward, Corbion targets a dividend pay-out ratio of approximately 35 percent of net profits adjusted for non-cash one-off items. Corbion will critically review the debt position in relation to investment plans periodically, and decide upon potential further returns.
A general meeting of shareholders will be held on October 11, 2013, in view of the new company name, the new dividend policy and the share buy-back.