Food products company
ConAgra Foods, Inc.
) recently acquired TaiMei Potato Industry Limited, a potato
processor in Shangdu, Inner Mongolia. Valued at $93 million, the
acquisition is in line with ConAgra's international expansion
TaiMei Potato Industry complements ConAgra's Lamb Weston potato
business, which produces varieties of sweet potato, frozen potato,
appetizer and other vegetable products. The Lamb Weston potato
business has been serving more than 100 countries over the past 60
With the acquisition, ConAgra will own its first
potato-processing facility in China. TaiMei will aid the company in
tapping the growth opportunities in Asia. All 340 employees of the
Chinese facility will continue working with the company under the
payrolls of ConAgra.
The funds for the transaction will not affect ConAgra's debt
reduction plans. The company intends to repay $1 billion debt in
fiscal 2015 in order to strengthen its balance sheet.
ConAgra reported disappointing results for the fourth quarter of
fiscal 2014, with 8% year over year reduction in adjusted earnings
to 55 cents per share. Moreover, quarterly sales declined 2% year
over year to $4,436.8 million. However, the Lamb Weston potato
business witnessed a rise in sales. In the coming quarters, ConAgra
expects to record an improvement in all the business segments,
along with synergies from the Ralcorp acquisition.
With a market capitalization of $13 billion, ConAgra holds a
Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the
The Hain Celestial Group, Inc.
Treehouse Foods, Inc.
Pinnacle Foods Inc.
). While The Hain Celestial Group and Treehouse Foods sport a Zacks
Rank #1 (Strong Buy), Pinnacle Foods holds a Zacks Rank #2
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