ConAgra Foods Inc. announced that it has acquired TaiMei Potato Industry Limited, a potato processor in Shangdu, Inner Mongolia, China. The company said that the purchase price of $93 million will not impact the company's previously discussed debt reduction plans in fiscal 2015 and will further its growth internationally.
ConAgra noted that the acquisition expands its Lamb Weston operations in a market that has growing demand for frozen potato products. Lamb Weston makes a variety of frozen potato, sweet potato and other vegetable products for restaurants, retailers and foodservice operators in more than 100 countries around the world.
Established in 2010, TaiMei is located in one of the largest potato growing regions in China. The facility provides Lamb Weston the ability to make frozen potato products closer to its expanding customer base and meet the growing demand for frozen potato products in Asia. TaiMei's approximately 340 employees joined ConAgra Foods Lamb Weston upon close of the transaction.
The acquisition is part of ConAgra Foods' strategy to grow its international business, and it will not impact the company's long-term capital allocation plans, ConAgra Foods said.
Source: NASDAQ