Post Holdings, has extended its range of products from cereals into eggs through the Michael Foods subsidiary over past years, has agreed to acquire Lamb Weston Holdings, a major producer of potato products. Financial details have yet to be announced. The market value of Post Holdings was $6,730 million on December 18th with Lamb Weston valued at $11,745 million
Lamb Weston did embark on a recent restructuring program involving consolidation of production facilities in an attempt to reduce cost and to offset a decline in share value. Jana Partners, an active investor with a five percent equity position, urged a strategic review including the option of a sale with prospective suitors including Cargill, Kraft-Heinz and even Tyson Foods.
Complaints relating to the management of Lamb Weston included excessive capital expenditure and inappropriate marketing decisions. Alleged misuse of corporate aviation assets was also raised by the activist investor. This involved the CEO and officers commuting between their residences in Omaha, NE, the previous headquarters of the company, to the current location in Boise, ID.