Several Belgian media report that Clarebout Potatoes is in advanced talks about a takeover or alliance with American industry peer JR Simplot. Clarebout is also said to have been in talks with investment funds CVC Capital and Advent in the past six months. Parallel to this, the talks with Simplot were ongoing and the deal is almost done, reports the Belgian newspaper De Standaard, among others.
The Belgian medium De Standaard reports that rumors of an impending deal have been circulating in West Flanders for weeks, but Clarebout has always denied them so far. According to the medium, JR Simplot Company is putting around €2,5 billion on the table to take over Clarebout. The Belgian chip giant is also said to have been in talks with investment funds CVC Capital and Advent in the past six months. Parallel to this, the talks with the JR Simplot Company were ongoing.
At first glance, a collaboration seems fitting. Both Clarebout and JR Simplot are family businesses. Clarebout is not active on the North American French fry market, while Simplot has never set foot in Europe. Clarebout is the world's largest French fry producer after the Canadian McCain and Lamb Weston from the US. In 2022, Clarebout passed the milestone of a turnover of more than €1 billion for the first time. In 2022, Clarebout acquired fellow industry player Mydibel and the company recently opened a brand new factory in Dunkirk. This new factory cost €350 million.
Active in various links
Simplot is based in Idaho, the potato state of the United States. The group not only processes potatoes in North America, but also has factories in Australia, Argentina, Mexico and China. The American group recorded a turnover of US $2024 billion in 11 and is therefore much larger than Clarebout. Simplot is a so-called vertically integrated company, which is active in various links in the agricultural chains. For example, in addition to processing French fries potatoes, the group is also involved in seeds, fertilizers and animal feed.
The French fries sector has had a few good years and that is noticeable in the investment drive of the companies. For example, Aviko built a new factory in Poperinge and Agristo recently announced that it would build a new factory in North Dakota. There is still a risk in that aggressive investment policy. Overcapacity and strong mutual competition are lurking.