OMAHA, Neb.--(Business Wire)--
ConAgra Foods, Inc. (NYSE: CAG) announced today 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., (NYSE: CAG) 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. For more information, please visit
us at www.conagrafoods.com.
Note on Forward-looking Statements:
This release contains forward-looking statements. These statements
are based on management's current views and assumptions of future
events and financial performance and are subject to uncertainty and
changes in circumstances. The company undertakes no responsibility to
update these statements. Readers of this release should understand
that these statements are not guarantees of performance or results.
Many factors could affect the company's actual financial results and
cause them to vary materially from the expectations contained in the
forward-looking statements. These factors include, among other things,
future economic circumstances, industry conditions, the company's
ability to execute its operating and restructuring plans, availability
and prices of raw materials, product pricing, competitive environment
and related market conditions, operating efficiencies, the ultimate
impact of the company's recalls, access to capital, actions of
governments and regulatory factors affecting the company's businesses
and other risks described in the company's reports filed with the
Securities and Exchange Commission. The company cautions readers not
to place undue reliance on any forward-looking statements included in
this release, which speak only as of the date made.
ConAgra Foods
Jeff Mochal, 402-595-7825
E-mail: jeff.mochal@conagrafoods.com
Copyright Business Wire 2008
