Belgian French fry producer Clarebout Potatoes is being definitively acquired by the American JR Simplot Company. Rumors of an impending deal had already circulated, and now both companies have confirmed the acquisition news in a statement.
Both parties have not disclosed the deal's monetary value. Rumors previously suggested it could be as high as €2,5 billion. In any case, it's a substantial sum, and the market is speculating on a high share valuation.
In an email to employees last month, Clarebout announced its intention to partner with an American company, now that it has become clear that the move is an acquisition. According to CEO Jan Clarebout, an acquisition wasn't a necessity, but objectively a sensible choice. "The economic reality of the world has brought us together."
Ambitions remain intact
It is emphasized that little will change for the processing of potatoes into finished products. After the acquisition, the factories in Europe will remain, and the expansion ambitions of recent years will remain intact. Earlier this week, it was announced that Clarebout is building a French fry factory in Beijing, China.
Clarebout is the third-largest frozen French fry producer in the world, after Canada's McCain and the US-based Lamb Weston. The company employs approximately 2 people. J.R. Simplot has 15.000 employees, although the company is not limited to fries. In 2024, the company generated a turnover of $11 billion.