Heat oven to 400°F. Cook bacon in medium skillet over medium heat until crisp. Drain bacon; reserve 2 tablespoons bacon drippings.
In ungreased 2 to 2 1/2-quart casserole, combine reserved bacon drippings, potato slices and contents of sauce packet from potatoes. Stir in sugar, celery seed, pepper, water, milk, vinegar and Worcestershire sauce until well mixed. Add sauerkraut, pimientos and cooked bacon; mix well.
Bake at 400°F. for 40 to 50 minutes or until potatoes are tender. Let stand 5 minutes. Stir before serving.