Lamb Weston Holdings, the US-based potato-products supplier, has finalised its move to buy out its partner in a venture in its domestic market.
The company announced today (4 January) it had sealed its move to acquire the rest of a potato-processing venture in the US, Lamb Weston BSW, that it did not already own.
News of the deal being finalised came alongside Lamb Weston’s second-quarter and first-half financial results, numbers that prompted the company to lift its forecasts for its annual net sales and its “adjusted EBITDA including unconsolidated joint ventures”.
Lamb Weston BSW was set up in 2008 when the company, then part of the then ConAgra Foods, teamed up with local supplier Ochoa Foods.
In June, Lamb Weston informed Ochoa of its exercise of a call option to purchase to buy the 50.01% in the venture held by its partner. The company struck the deal in December.
In the 26 weeks to 25 November, Lamb Weston generated net sales of US$1.83bn, up from $1.64bn a year earlier. The company’s income from operations stood at $326.6m, compared to $277.4m in the corresponding period the previous year. Lamb Weston’s first-half net income was $226.8m, against $160m in the prior first-half period.
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Lamb Weston now expects its annual net sales to increase at a “mid-to-high single digit” rate, up from a previous estimate of mid-single digits.
It is now forecasting adjusted EBITDA including unconsolidated joint ventures of $870-880m, compared to the previous forecast of $860-870m.