Dutch firm CSM NV, which is selling its core bakery business, is returning 250 million euros ($334 million) to shareholders and setting targets for its remaining ingredients operations, which will be renamed Corbion.
CSM shareholders will receive a special all-cash dividend of 0.70 euro per share, or 50 million euros in total, and the remainder through a share buy-back.
CSM agreed in March to sell its struggling bakery unit - which accounted for the bulk of its revenues - to U.S. private equity firm Rhone Capital for 850 million euros, and said it is on track to complete the divestment in the third quarter.
Corbion will focus on lactic acid - a product used in a range of goods from salad dressings and beverages to household detergents - and on bakery ingredients such as icings, fillings and colourings.
CSM set a compound annual growth rate target for sales growth at Corbion of between 6 and 9 percent for the period 2013-2016, driven by fast-growing bioplastics.
"Corbion is a leading player offering high value added ingredients to food companies, helping them solve their food integrity issues such as food safety, microbial spoilage, look and feel, and taste and smell," CSM said in a statement.
It said Corbion, which is strong in the bakery and meat sectors, would require significant investment to expand lactic acid capacity in the next two years, and would also look at possible acquisitions to bolster growth.
