Starboard Value has acquired a major ownership position in french fry manufacturer Lamb Weston and is pushing the company to accelerate operational changes and reduce expenses. The Wall Street Journal reports that Starboard has become one of the largest investors in the $6.34 billion company that supplies McDonald's and other major restaurant chains.
Investment firm Starboard Value has accumulated a major ownership position in french fry producer Lamb Weston and is pushing the company to accelerate business improvements and expense reductions to boost share values, the Wall Street Journal reported Sunday based on insider sources.
According to the WSJ’s reporting, Starboard has emerged as one of Lamb Weston’s biggest investors, though the precise percentage of ownership remains undisclosed.
The company, valued at $6.34 billion in market worth, provides french fries and potato-based appetizers to major restaurant chains including McDonald’s and Yum Brands.
The investment firm has held shares for some time but recently identified an opportunity to increase its position after determining the stock was trading below its true value, the report indicated.
A Lamb Weston spokesperson told Reuters via email that the company appreciates “ongoing and constructive dialogue” with its investors.
Last year, the potato products manufacturer reached an agreement with Jana Partners, which resulted in Starboard Value gaining significant representation on the company’s board of directors.
Starboard Value has not yet provided a response to Reuters’ requests for comment made outside regular business hours.
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