J. R. Simplot Company of Boise, ID, and Nestle USA Inc. of Glendale, CA, jointly announced Aug. 2 that the two companies have reached an agreement whereby Simplot would purchase Nestle FoodServices Division's processed potato business.
The acquisition will include three potato-processing plants located in Nampa, ID, and Moses Lake and Othello, WA. In addition, an option was made to purchase the Nestle potato-processing business in Chile.
Terms of the agreement were not disclosed. The sale is subject to regulatory approval.
James Munyon, Food Group President, said, "the Nestle facilities and employees will complement our commitment to high-quality products and operations excellence. This acquisition supports the growth of our domestic and export potato business."
Simplot has been a foodservice pioneer and innovative leader in the frozen potato business since the 1950s with 23 direct and affiliated processing plants in the U.S., Mexico, Canada, Australia, and China. The company is a global supplier of frozen french fries and many other food products.
Simplot is a privately held business with 12,000 employees and annual revenues of $2.7 billion. In addition, the firm also owns fertilizer manufacturing, cattle feeding, farming, and turf products.
Joe Weller, Chairman and CEO of Nestle, said his company determined that future opportunities for long-term profitable growth would be greater in other food and beverage categories in which the company competes.