McCain Foods picks up PinguinLutosa potato division

Contrary to what many in the Belgian media had suggested, it is McCain Foods picking up the potato division of the Belgian Frozen Food manufacturer PinguinLutosa and not Conagra Foods Lamb Weston. McCain Foods and PinguinLutosa issued the following press release earlier today:

McCain Foods and PinguinLutosa Food Group announced today that they have signed a Share Purchase Agreement for the sale of Pinguin’s Lutosa division to McCain Foods.

The agreement is based on an enterprise value of the division of EUR 225 million.

It encompasses Lutosa’s operations in production, marketing and distribution of frozen, chilled and dehydrated potato products, as well as the Lutosa brand.

A binding agreement has been approved by the boards of directors of both parties. It is subject only to a confirmatory due diligence and regulatory approvals. Terms of the agreement were not disclosed.

Jean Bernou, Chief Executive Officer of McCain Continental Europe, said, “This acquisition is in line with our strategy of reinforcing our core potato business in Europe. The products and brand positioning of Lutosa and McCain are highly complementary. Lutosa will help us to further expand our product offering and cater to a wider range of customers while ensuring continuity in terms of investments and optimal service quality.”

Hein Deprez, Chief Executive Officer of PinguinLutosa Food Group, commented: “When we were approached by McCain, the opportunity for us to focus on our core fruit and vegetable business while allowing the Lutosa division to reach the next level of excellence was too good to pass up. Lutosa developed a strong brand and market position around the world, and can count on a strong team of employees, partners, farmers and traders. We are delighted that Lutosa will become part of the potato leader and can continue to grow further.”