Sector News

Lamb Weston to take full control of European JV

October 22, 2022
Consumer Packaged Goods

Lamb Weston has announced it will purchase the remaining 50% stake in its European joint venture with Meijer Frozen Foods for €700 million.

Lamb-Weston/Meijer manufactures nearly 2 billion pounds of frozen potato products annually at facilities in the Netherlands, UK and Austria.

The business generated approximately €954 million in net sales in fiscal 2022, which included €114 million from a joint venture partnership in Russia that Lamb-Weston/Meijer exited earlier this year.

Lamb Weston president and CEO, Tom Werner, said: “Lamb-Weston/Meijer was built over the last 28 years, and we’re grateful to Meijer Frozen Foods for their longstanding partnership. The joint venture has served as a strong platform to drive growth in Europe and the Middle East, as well as to support our global customer base across our key international markets.

“This transaction firmly aligns with Lamb Weston’s long-term capital allocation and acquisition framework, and we believe it will strengthen our manufacturing footprint by leveraging a truly global supply chain to better serve our customers and position us to take advantage of growth opportunities in Europe, the Middle East and Africa.”

The transaction is expected to close in the second half of fiscal 2023, subject to regulatory approvals. Upon completion, the former joint venture’s around 1,500 employees will become employees of Lamb Weston.

The purchase price consists of €525 million in cash and €175 million of Lamb Weston’s common stock.

“We remain confident in the long-term outlook for Lamb Weston and the global frozen potato category,” said Kees Meijer, CEO of Meijer Frozen Foods. “By holding an investment in [the] common stock of Lamb Weston after the transaction closes, we sustain our strong belief in a bright future for the business.”

By Antonia Garrett Peel

Source: foodbev.com

comments closed

Related News

June 16, 2024

Mondelēz, Lotus Bakeries partner to expand Biscoff brand in India, develop co-branded Chocolates

Consumer Packaged Goods

In addition, the two companies will collaborate on developing and launching new chocolate innovations that combine the signature Biscoff flavour and texture with Mondelēz’s iconic brands like Cadbury and Milka. The first co-branded chocolate products are expected to hit the shelves in the UK and Europe in early 2025.

June 16, 2024

Danone, DMC, Michelin and Crédit Agricole Centre France to create precision fermentation platform

Consumer Packaged Goods

The Biotech Open Platform aims to accelerate precision fermentation development by scaling up lab-tested innovative products and processes. By 2025, the project plans to install a demo-scale production line, including a fermenter and purification equipment, with additional equipment and a second production line to follow.

June 16, 2024

Kikkoman breaks ground on $560m US production facility

Consumer Packaged Goods

The new 240,000-square-foot Jefferson site is set on a 100-acre plot at the heart of what will be the 200-acre Food and Beverage Innovation Campus. The plant will be fully integrated and automated using advanced mobile technology. It has been designed for flexibility, speed, efficiency and scalability, with the ability to make smaller or larger batch sizes as needed.

How can we help you?

We're easy to reach