Lamb Weston Holdings Inc. to purchase remaining interests in Lamb Weston/Meijer
Lamb Weston Holdings Inc., a frozen potato produce supplier, will purchase the remaining equity interests in its European joint venture with Meijer Frozen Foods B.V. for €700 million in cash and common stock of Lamb Weston.
“Lamb-Weston/Meijer was built over the last 28 years, and we’re grateful to Meijer Frozen Foods for their longstanding partnership,” said Tom Werner, president and CEO of Lamb Weston. “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.”
“We’re proud of the business we’ve built together to create a market leader in Europe,” said Kees Meijer, CEO of Meijer Frozen Foods. “We remain confident in the long-term outlook for Lamb Weston and the global frozen potato category. By holding an investment in common stock of Lamb Weston after the transaction closes, we sustain our strong belief in a bright future for the business.”
Upon completion of the transaction, Lamb Weston will own 100% of Lamb-Weston/Meijer v.o.f., formerly operated as a 50/50 joint venture between a wholly owned subsidiary of Lamb Weston and Meijer Frozen Foods. Lamb Weston will pay transaction consideration of €700 million, comprised of €525 million in cash and €175 million of Lamb Weston’s common stock. The company anticipates closing the transaction in the second half of fiscal 2023, subject to regulatory approvals.