Lamb Weston/Meijer to acquire majority stake in Russian joint venture

Lamb Weston/Meijer has agreed to acquire a majority stake in its existing joint venture with Russian potato processor the Belaya Dacha Group for an undisclosed amount.

According to a statement from Lamb Weston/Meijer, the joint venture owns and operates Russia’s largest french fry factory in Lipetsk, Russia, and has recently expanded its production capacity for potato products.

The original joint venture between the companies was formed in 2016, with Lamb Weston/Meijer owning a 35.5% minority stake in the venture. Following this agreement, Lamb Weston/Meijer will increase its ownership stake in the joint venture to 74.9%.

Belaya Dacha shareholder Vladimir Tsyganov will continue to own the minority share in the venture.

The transaction has already been approved by the Federal Antimonopoly Service (FAS) competition authority in Russia.

Peter van Wouwe, CFO of Lamb Weston/Meijer said: “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.”