ConAgra Foods Acquires Watts Brothers to Strengthen Its Lamb Weston Business

01 Feb 2008

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ConAgra Foods, Inc. announced that it has acquired Kennewick, Wash.-based Watts Brothers, a privately held vegetable processing and agricultural company, to further grow and strengthen its core potato business operating under the Lamb Weston brand.

Lamb Weston is the largest potato company in North America with annual sales of approximately $2 billion. Financial terms of the deal were not disclosed.

The Watts Brothers entities directly or indirectly own, operate and manage a vegetable processing business located in Washington and Oregon, along with an organic dairy, fertilizer, cold storage, packaging and agricultural farming businesses. Watts Brothers was founded by Don and Lori Watts in 1977 and currently generates approximately $100 million in annual net sales. The company supplies a variety of customers in retail, foodservice and industrial channels within the U.S. as well as export customers in Mexico, Japan, China and other Far East countries. The current management team of Watts Brothers, along with approximately 350 salaried and hourly employees, will be offered employment with ConAgra Foods Lamb Weston.

"The acquisition of the Watts Brothers entities will strengthen Lamb Weston's position in its core Northwest growing region, providing a more stable raw material base while also strengthening the Lamb Weston supply chain," said Gary Rodkin, chief executive officer of ConAgra Foods. "Additionally, Watts Brothers' strong position in vegetables will complement existing potato product sales in both existing and new markets, providing additional opportunities for sales growth."

Jeff DeLapp, president of ConAgra Foods Lamb Weston, added, "For the last 10 years, ConAgra Foods Lamb Weston has enjoyed a successful business relationship with Watts Brothers, via a farming joint venture. With the addition of the Watts Brothers business, we not only deepen our relationship in farming, but add capabilities and capacity in frozen storage, vegetable processing, and organic dairy. In addition to our farming relationship, Watts Brothers has become, over time, a leading supplier of frozen vegetables to ConAgra Foods' Consumer Foods business. Further, we look forward to the synergy of working with their talented management team."

"At Watts Brothers, we have always taken a great deal of pride in our strong focus on customer service and our sustainable business model," said Don Odegard, president of Watts Brothers. "This agreement is a major milestone for our company as it allows us to leverage the incredible reach and expertise of ConAgra Foods Lamb Weston. The result is a much stronger business for both companies."

The acquisition of Watts Brothers includes a vegetable processing facility, an organic dairy, and a refrigerated warehouse and packaging facility. The Watts Brothers farming operation consists of more than 20,000 acres of land.

ConAgra Foods, Inc., is one of North America's leading packaged food companies, serving consumer grocery retailers, as well as restaurants and other foodservice establishments. Popular ConAgra Foods consumer brands include: Banquet, Chef Boyardee, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, Marie Callender's, Orville Redenbacher's, PAM and many others.

Source: ConAgra Foods Inc