McCain Foods, the Canada-based frozen potato products giant, has struck a deal to acquire US peer Penobscot McCrum.
Financial terms of the deal were not disclosed.
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Penobscot McCrum, which produces products such as fries and wedges, is a family-owned business based in the state of Maine. The acquisition includes Penobscot McCrum’s potato processing facility in Washburn, Maine.
All 130 Washburn employees will move to McCain Foods.
In a statement, McCain Foods said the acquisition will expand its North American footprint and “complement” its Easton, Maine plant.
The French fries maker said incorporating Penobscot McCrum’s facility will “provide flexibility to pursue modernisation, lower costs [and] optimised processing”.
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By GlobalDataIn a LinkedIn post, Max Koeune, president and CEO of McCain Foods, said: “This development represents an exciting opportunity to strengthen regional supply, support local jobs, and enhance service to customers across North America.”
Completion of the deal is contingent on the fulfilment of customary closing conditions.
The McCrum family farming business will remain independently owned and have signed a “long-term” potato supply agreement with McCain Foods.
Jay McCrum, owner and CEO of Penobscot McCrum, said: “This is a natural next step for the long-standing partnership between our farming operations and McCain Foods.”
Howard Snape, North America regional president of McCain Foods, pointed to a “lot of synergy” between the two family-owned companies.
McCain Foods operates 49 production facilities on six continents and has around 22,000 employees.
It partners with 3,900 farmers and generates more than C$16bn ($11.4bn) in annual sales.
In April 2024, McCain Foods acquired Irish plant-based frozen-food company Strong Roots for an undisclosed fee. The deal built on a move announced in 2021 that saw McCain Foods buy a minority stake in the business.
A month later, McCain Foods said it would invest more than €350m ($377.8m) in France to develop production facilities and strengthen its competitiveness there.
The same year, the company sold its frozen-pizza assets in Argentina to Molinos Río de la Plata and its Dutch fresh potato business to local investor Nimbus.
In November 2024, McCain Foods was among a group of frozen-potato product suppliers facing US lawsuits linked to claims of price-fixing.
