Bob Evans Foods to acquire Pineland Farms Potato for $115m
Ohio based Bob Evans Foods (BEF) has agreed to acquire 100% of Maine based Pineland Farms Potato Company (PFPC) for $115m.
BEF which will merge PFPC in its fold expects to expand its reach in the refrigerated potato industry through the deal.
Located in Mars Hill, PFPC processes refrigerated potato products in different forms after sourcing more than 100 million pounds of potatoes each year from Maine farmers. The potato processing company was repurchased by the Libra Foundation and a consortium of investors in 2010.
BEF president and CEO Saed Mohseni said: “The acquisition of PFPC not only increases our side-dish production capacity, it provides capability to produce and sell diced and shredded potato products in both the retail and foodservice channels.
“The acquisition also diversifies our production capability by adding a second state-of-the-art potato processing facility with 180 million pounds of capacity, 50 million pounds of which are expected to come online in April 2017. Furthermore, PFPC comes with a 900 acre potato farm and is surrounded by an additional 55,000+ acres of annual potato production.”
PFPC expects the ownership transition period to be smooth as it has been a major supplier to BEF over the years.
PFPC chairman and CEO Bill Haggett said: “We have made tremendous strides in Maine, but there are practical limitations on how much further current owners would be able to take this business.
“Bob Evans’ ownership adds new dimensions which will greatly strengthen the company to the long-term benefit of employees, potato growers, the economy of northern Maine and our superb customer base.”
The transaction pertains only the potato business in Mars Hills of Pineland Farms Hills, while its natural meats, cheese and real estate businesses will remain unaffected.
PFPC president and chief operating officer Rodney McCrum along with the entire staff are likely to remain with the company as its management team.