LWM takes over Oerlemans potato branch

Potato processor LambWeston/Meijer takes over the potato division of Oerlemans Foods. As a result, the factory in Broekhuizenvorst, Limburg, will also come into the hands of LWM. Oerlemans will focus entirely on fruit and vegetables.

LambWeston/Meijer takes over the potato division to respond to the increasing demand for frozen potato products. The acquisition is currently in a final phase. Oerlemans Foods will continue to specialize in fresh-frozen fruit and vegetables. The acquisition is expected to be completed in the course of this year.

Strategic asset
Bas Alblas, CEO of LWM, speaks in a press release of a strategic asset. This is due to the diverse customer base of Oerlemans Foods and the favorable position of the factory in Limburg. With this, the company hopes to be able to fulfill its growth ambitions. The purchase will increase LWM's production capacity by 85.000 tons. The potato processor thus has 4 factories in the Netherlands.

The other production locations are in Bergen op Zoom, Kruiningen and Oosterbierum. The company also has factories in Wisbech and Hollabrunn, England. It is building a chips factory in Russia, in collaboration with the Russian company Belaya Dacha. Company opened a new production line in Bergen op Zoom last November, which doubled the capacity at that location.

Increase position
By divesting the potato branch, Oerlemans hopes to increase its position in the growth market for fresh-frozen fruit and vegetables. The company's home markets are in Northwestern Europe and Poland. The company also wants to grow in the organic segment, in and outside Europe.

Oerlemans Foods was founded in 1977 and has traditionally been active in the production of potato products. The company mainly focuses on retail and food service. There are 4 factories in the Netherlands and Poland. The head office is in Venlo. All shares of the company are held by the management and investment company H2 Equity Partners.

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

n.vanderboom@boerenbusiness. Nl

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