Potato processor Lamb Weston / Meijer has strengthened its position in the frozen processed potato market in Russia with the acquisition of a majority share in its existing joint venture with the Belaya Dacha Group. The joint venture owns Russia’s largest french fry factory.
According to Peter van Wouwe, CFO Lamb Weston / Meijer, “in 2016 we started a joint venture with the Belaya Dacha Group, because both parties saw unique opportunities in a rapidly growing Russian market. Now, after four years, we are pleased to increase our share, and look forward to continue supporting our Russian customers and international key accounts in optimizing their own value chain and growing their businesses.”
This agreement builds on the successful collaboration with Belaya Dacha Group which started in 2016. At the time, starting a large-scale potato processing plant – the first large french fries factory in Russia – was a key priority for the joint venture partners.
The initial joint venture partnership established that the Belaya Dacha Group would initially have a majority share position, with Lamb Weston / Meijer having the opportunity to increase its ownership position over the years.
The current transaction provides that Lamb Weston / Meijer increases its ownership position in the joint venture to 74.9% from its original position of 35.5%. Belaya Dacha shareholder Vladimir Tsyganov will continue to own the minority share and continue the successful partnership.
The transaction has been approved by the Federal Antimonopoly Service (FAS) in Russia.
Source: Lamb Weston / Meijer