ConAgra Foods Acquires TaiMei Potato Industry Ltd and Primes for International Growth
ConAgra Foods is strengthening its handle on overseas growth. This week, the Omaha-based food processing and manufacturing business announced that it has acquired Shangdu, China-based potato processing company TaiMei Potato Industry Ltd.
ConAgra Foods purchased the potato processor for $93 million, tying it to ConAgra’s Lamb Weston brand of potato and sweet potato products prepared for the foodservice industry. With this purchase, ConAgra Foods is making a statement that it is taking expansion and development of its products in the Asia marketplace very seriously.
“We’ve been doing business in China and throughout Asia for more than 25 years, leading the way in market development and expansion,” said Greg Schlafer, president of Lamb Weston, in a statement released by ConAgra Foods. “TaiMei is ConAgra Foods’ first potato processing facility in China, and we are confident they’ll help to accelerate our strong growth in Asia.”
In particular, this acquisition is a coup for ConAgra Foods as TaiMei is located in a prime potato-growing region in China. This not only gives ConAgra the services of a powerful processing company, it also strengthen’s ConAgra’s global supply chain by providing strong access to agricultural resources within the region. This results in efficiencies that can be passed down to the customer, which is ConAgra’s plan for commercial success in the market.
“Our focused expansion in China is truly customer-centric. We’re leveraging our deep industry experience to develop in-country supply capabilities for our major quick-service restaurant chains and other strategic customers,” said Gary Rodkin, chief executive officer of ConAgra Foods, in the same statement. “Our customers have aggressive growth plans in China, and by adding ConAgra Foods’ operations in China, we will be better able to support their plans.”
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