Dive Brief:
- ConAgra is buying TaiMei Potato Industry Ltd. in a $93 million deal aimed at boosting ConAgra's supply chain in Asia.
- TaiMei Potato employs 340 people and is based in Shangdu, Inner Mongolia. The purchase gives ConAgra its first potato-processing plant in China.
- TaiMei will supply ConAgra's Lamb Weston unit, which sells frozen potato products to foodservice operators and restaurants globally, as it seeks to expand sales in Asia.
Dive Insight:
Odds are we'll see a lot more deals like this from ConAgra -- smaller purchases with limited risk in markets outside the U.S.
That only makes sense given that the Omaha-based food processor continues to struggle with absorbing its last major acquisition (Ralcorp) and the continuing decline in sales of U.S. consumer brands, such as Chef Boyardee and Healthy Choice.
