ConAgra Foods Inc.’s Lamb Weston division and Ochoa AG Unlimited Foods Ltd. will form a 50/50 joint venture to operate Ochoa Foods' potato processing plant in Warden, Wash.
The joint venture, called Lamb Weston/BSW, will develop, process and sell frozen potato products. Financial terms of the joint venture were not disclosed.
Ochoa Foods is a privately owned potato processing company based in Boise, Idaho.
"This is an exciting new opportunity for Lamb Weston, and a true 'win-win' for both Ochoa Foods and Lamb Weston," ConAgra Foods Lamb Weston President Jeff DeLapp said in a statement.
"Combining Ochoa's entrepreneurial spirit and experience with Lamb Weston's operating reach should drive improved earnings potential for both companies."
Ochoa Foods chief operating officer Howard Bafford says the partnership is a major milestone for his company.
"The employees of Ochoa Foods have worked extremely hard to establish the base of business we have today, and we look forward to combining this effort with the resources of ConAgra Foods Lamb Weston in this new joint venture."
The Warden plant processes about 300,000 tons of potatoes a year and services several major quick-service restaurants and other foodservice accounts.