Activist Jana is back in the kitchen at Lamb Weston – Here’s what could happen next

Lamb Weston is one of the largest frozen potato suppliers in the world, ranking No. 1 in North America and No. 2 globally.

Lamb Weston was initially acquired by ConAgra Brands in 1988 .

Jana , along with Continental Grain , intends to have discussions with Lamb Weston regarding a slate of topics.

The company's performance following the spinoff was excellent for many years .

Lamb Weston's shares were trading at around $115 in June 2023 , versus 98% for the S&P 500.

The primary issues facing this company highlighted by Jana Partners are capital misallocation, operational blunders and corporate governance failings.

Since Lamb Weston's spin, Post has delivered a total return of over 120% .

Extrapolating from the failed 2016 deal and adjusting for EBITDA growth, it would not be surprising to see a takeout offer north of $ 100 per share.

The board would have to evaluate value for shareholders versus the long-term prospects of an operational plan.