EAGLE, IDAHO — Lamb Weston Holdings, Inc. has entered an agreement to purchase the remaining equity in its European joint venture with Meijier Frozen Foods BV for more than $680 million.

Following the transaction’s expected completion in the second half of fiscal 2023, the potato processor will own 100% of the previously 50/50 joint venture that recorded $930 million in sales during fiscal 2022.

“The joint venture has served as a strong platform to drive growth in Europe and the Middle East, as well as to support our global customer base across our key international markets,” said Tom Werner, president and chief executive officer of Lamb Weston. “This transaction firmly aligns with Lamb Weston’s long-term capital allocation and acquisition framework, and we believe it will strengthen our manufacturing footprint by leveraging a truly global supply chain to better serve our customers and position us to take advantage of growth opportunities in Europe, the Middle East and Africa.”

The deal includes roughly $170 million of Lamb Weston common stock and $510 million in cash, funded with new borrowings and cash on hand.

Lamb Weston also will acquire five manufacturing facilities through the transaction, including four in The Netherlands and one in the United Kingdom, in addition to a sixth facility in Austria through a 75% interest in a joint venture. The facilities combine to produce nearly 910,000 tonnes of frozen products annually.

The purchase comes just one month afterLamb Weston increased its stakein its South American joint venture with Sociedad Comercial del Plata, Alimentos Modernos SA, from 50% to 90%.