Three French fries giants are competing for the takeover of Mydibel

According to De Tijd, two multinationals: Lamb Weston and McCain, and the largest European chip producer Clarebout, are in the running to take over Mydibel. It is estimated that this will cost around €300 to €400 million. How the Belgian journalists obtained the information is not disclosed. The companies themselves do not make any statements about the acquisition, but more will probably be known in the coming weeks.

Agristo was previously also involved in a possible takeover, but has withdrawn from the negotiations, according to sources. De Tijd already reported this in mid-October mydibel was for sale and that the Mylle family was looking for a takeover candidate.

family business
The majority (80,8%) is owned by brothers Bruno and Carlo Mylle, who took over the company from their father and founder Roger Mylle. He started as an arable farmer in 1988 with French fries production in Mouscron. Ten years later the production of puree specialties followed. In 2002, the production of granules and flakes was added (Gramybel). The Walloon SRIW group, a public investment company, has owned the remaining shares of Mydibel since 2020. According to De Tijd, the company will book almost €400 million in gross profit and an Ebitda of €30 million this year.

It is not entirely clear how much the company produces annually. Reports on this vary, but amount to approximately 255.000 to 330.000 tons of potato products.

The Canadian McCain and American Lamb Weston are logical candidates for the takeover. Ten years ago, McCain made a major acquisition in the Belgian potato sector by taking over Lutosa for €225 million. Lamb Weston bought out the Dutch Meijer family in the joint venture in October Lamb Weston/Meijer. That cost the world number two €700 million, of which €525 million in cash for the Meijer family.

Clarebout
The largest European potato processor Clarebout is perhaps a less logical buyer. Financially, the takeover should not be a problem for the company, but Clarebout is currently building a new factory in Dunkirk, France. It should start operating in 2023. In addition, the company made plans for years to build in Frameries in Wallonia. It is not clear whether those plans are temporarily on hold or completely off the table.

The major takeover plans are being made at a turbulent time for the potato processing industry. Belgium, the largest exporter of frozen fries worldwide, just doesn't want to stop. All eyes are focused on the west of the country, with Wallonia in particular, and northern France. Aviko Potato opened there will be a new factory in October and Clarebout will follow next year. lutosa opened the doors of a new flake factory in November and the Belgian number two Agristo has also not been idle in the last decade.

Lack of potatoes
Belgium and France in particular are struggling with a poor ware potato harvest this year. Official figures are not yet available, but research organizations PCA, Fiwap, Inagro and Carah estimate that 3,97 million tons of potatoes have been harvested in the country. That is 8% less than the multi-year average, while the area grew by 3%. According to the NEPG, 5,94 million tons have been harvested in France this year. That is also 8% less than the five-year average. In the Netherlands and Germany, Belgian processors are shopping around to have sufficient raw materials.

After two corona years, chip exports and consumption have recovered rapidly, but it is not easy for the factories. The costs for transport, required energy, packaging materials and frying oil have all risen sharply. The market for potato products worldwide remains positive. The major competitor, the US, is also struggling to maintain its production. With that in mind, the competing factories do not lack motivation to run away with Mydibel.