McCain Foods, the Canadian leader in frozen potato products, has acquired US competitor Penobscot McCrum.
Although financial terms remain undisclosed, this acquisition signifies a strategic expansion for McCain Foods.
Penobscot McCrum, renowned for its fries and wedges, operates as a family-owned business in Maine. The acquisition encompasses their potato processing facility located in Washburn, Maine.
Importantly, all 130 employees at the Washburn site will join McCain Foods.
According to McCain Foods, this acquisition will bolster its North American presence while complementing its existing plant in Easton, Maine.
The French fries producer noted that integrating Penobscot McCrum’s facility will not only yield processing flexibility but also lower costs and modernize operations.
Max Koeune, president and CEO of McCain Foods, emphasized in a LinkedIn post: “This development represents an exciting opportunity to strengthen regional supply, support local jobs, and enhance service to customers across North America.”
However, completion of the deal relies on typical closing conditions being met.
The McCrum family business will retain independent ownership while entering into a “long-term” potato supply agreement with McCain Foods.
Jay McCrum, owner and CEO of Penobscot McCrum, stated: “This is a natural next step for the long-standing partnership between our farming operations and McCain Foods.”
Additionally, Howard Snape, North America regional president of McCain Foods, highlighted the “lot of synergy” between these two family-owned enterprises.
McCain Foods boasts 49 production facilities across six continents and employs approximately 22,000 individuals. The company partners with 3,900 farmers and achieves over C$16 billion ($11.4 billion) in annual sales.
In April 2024, McCain Foods acquired Irish plant-based frozen-food firm Strong Roots for an undisclosed amount, building upon a prior minority investment in the business announced in 2021.
Furthermore, just a month later, McCain Foods announced it would invest over €350 million ($377.8 million) in France to enhance production facilities and strengthen its competitive edge.
In the same year, the company divested its frozen-pizza assets in Argentina to Molinos Río de la Plata and sold its Dutch fresh potato business to local investor Nimbus.
In November 2024, McCain Foods found itself among a group of frozen-potato product suppliers facing US lawsuits concerning alleged price-fixing.
