McCain Foods to acquire PinguinLutosa Food’s potato unit

McCain Foods, a frozen food company based in Canada, has entered into an agreement to acquire the potato unit of Belgian frozen vegetables producer PinguinLutosa Food for €225m.

This is part of McCain Foods’ strategy to strengthen its core potato business in Europe.

The acquisition will include Lutosa’s frozen, chilled and dehydrated potato product operations such as production, marketing and distribution, as well as the Lutosa brand.

McCain Continental Europe chief executive officer Jean Bernou said the products and brand positioning of Lutosa complements McCain’s portfolio.

"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," Bernou added.

PinguinLutosa Food chief executive officer Hein Deprez said that the deal allows the company to focus on its core fruit and vegetable business, while allowing the Lutosa division to reach the next level of excellence.

"Lutosa developed a strong brand and market position around the world, and can count on a strong team of employees, partners, farmers and traders," Deprez added.

The agreement, which has been approved by the boards of directors of both parties, will be subject to clearance from regulatory authorities.

McCain Foods, based in Florenceville, Canada, is a leading producer of French fries and other oven-ready frozen food products. It has 50 production facilities globally.

PinguinLutosa Food operates in three segments – deep-frozen vegetables, potatoes and canned goods – and has 17 production sites in Belgium, France, the UK, Poland, Germany and Hungary.

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Image: The proposed acquisition of PinguinLutosa’s potato unit is part of McCain Foods’ strategy to strengthen its core potato business in Europe. Photo courtesy of McCain Foods Limited.