UPDATE 1-CSM buys bakery supplier Best Brands for $510 mln

* Acquisition price is 8.5 times EBITDA

* Synergies of at least $20 mln within 3 years

* Best Brands had $538 mln in 2009 sales

(Adds details)

AMSTERDAM, Feb 4 (Reuters) - Dutch food group CSM NV (CSMNc.AS) has agreed to buy U.S.-based bakery manufacturer Best Brands for $510 million to extend its world-leading position in the bakery supplies market.

CSM, which will finance the deal with existing credit facilities, said on Thursday the acquisition of the privately owned Best Brands fits with a strategy launched in 2005 to target growth in the in-store bakery market. "This acquisition will strengthen our ability to deliver organic growth in the North American market in particular," Chief Executive Gerard Hoetmer said in a statement.

Best Brands is one of the largest premium bakery manufacturers in the U.S. and had sales of $538 million in 2009, 75 percent of which were in the in-store segment, particularly frozen baked cakes and muffins.

Active in 16 countries in Europe, the U.S. and Asia, CSM said the acquisition would provide it with complementary products and expand its baking capabilities.

It said synergies in production, logistics and procurement were expected to amount to at least $20 million within three years.

CSM, which has a market capitalisation of 1.31 billion euros ($1.82 billion), said the acquisition price represented a multiple of 8.5 times reported 2009 earnings before interest, tax, depreciation and amortisation (EBITDA).

Rabobank/Rothschild acted as exclusive advisors to CSM. ($1=.7207 Euro) (Reporting by Aaron Gray-Block, editing by Will Waterman)