MARS HILL – A California potato supplier on Wednesday wrapped up its acquisition of a Mars Hill potato company in a deal that allows Naturally Potatoes to retain its name.

Basic American Foods, headquartered in Walnut Creek, Calif., negotiated an option in 2004 to purchase Naturally Potatoes and exercised that option this summer. Company officials announced the closing of the deal on Sept. 28, though they declined to comment on the financial terms of the acquisition.

“We were attracted to Naturally Potatoes because of the reputation that it has built as a supplier of refrigerated potato products in the eastern half of the United States,” Jack Parks, president of Basic American Foods, wrote Thursday in an e-mail message. “As a division of our company, it will concentrate on opportunities in the food service market.”

“The acquisition supports our company vision: to help our customers build their business with great-tasting, convenient food products and value-adding service,” he said.

Company officials have no plans to change the Naturally Potatoes company name. Its designation as a division will appear on printed materials such as letterhead and business cards.

“At this time, Naturally Potatoes products, packaging and sales materials will remain as they are,” Parks said. “It’s too early to know specifically what the future considerations might be. In the future, we may consider the introduction of other products going to market under other brands.”

Under the terms of the acquisition, Naturally Potatoes’ former president, Rodney McCrum, will stay at the division in an advisory capacity “on an open-ended basis during this transitional phase,” Parks said.

Operations will remain at the Mars Hill plant. Local plant manager Dick Wood now will work directly with Basic American Foods company officials. Parks said the company will maintain the existing employee profile with a continuation of all benefits.

Naturally Potatoes, established in 1997 by a group of local farmers, manufactures ready-to-cook potatoes that go through a unique process that extends the product’s refrigerated shelf life. The company offers cut potato products with a shelf life of 30 days and mashed potatoes with a 60-day shelf life. The company distributes its products to grocery stores, restaurants, airlines, medical institutions and government facilities across the country. Since its creation eight years ago, the company has significantly increased its production and grown from a work force of 30 to about 80 employees.

Basic American Foods, a privately held company, is one of the world’s largest suppliers of dehydrated potato and bean products. The company was founded more than 70 years ago and employs about 1,500 people.