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South Korean Food Group Agrees $1.84 Billion US Deal

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South Korean Food Group Agrees $1.84 Billion US Deal

South Korean Food Group Agrees $1.84 Billion US Deal
November 20
09:40 2018

CJ CheilJedang of Seoul, South Korea, is continuing its international expansion after agreeing to acquire a majority stake in Schwan’s Company, a leading US food business, for about US$1.84 billion. The transaction will include 80% of Schwan’s Company and specific subsidiaries that focus on foods sold in retail and grocery channels and food-service venues.

The Schwan family will retain 20% ownership in the businesses being sold to CJCJ and will also retain 100% ownership in Schwan’s Home Service, which represents the legacy home-delivery business that Marvin Schwan launched in 1952. The transaction is expected to close in the next 60 to 90 days. The sale will also include the company’s manufacturing and logistics operations and various professional and administrative services.

CJ CheilJedang is the core subsidiary in charge of the food and bioengineering business sectors of the CJ Group. It has led the development of the Korean food industry for the past 60 years and contributed to the development of the bioengineering industry as the nation’s top food company. Launched in 1953 as a food ingredient company, CJ CheilJedang has expanded its business to processed foods.

Schwan’s Company began in 1952 as a one-man-and-a-truck home-delivery business operating in rural Minnesota. Today, Schwan’s is a leading US food manufacturer and marketer with approximately 12,000 employees and trusted brands like Schwan’s® fine foods, Red Baron®, Freschetta® and Tony’s® pizza, Edwards® and Mrs. Smith’s® desserts, Pagoda® Asian-style foods and Schwan’s® Home Delivery.

Once the transaction is closed, Schwan’s will be operated as a subsidiary of CJ Foods America Corp, and its operations will continue to be headquartered at corporate offices in Marshall and Bloomington, Minnesota. Additionally, the current senior management team at Schwan’s will remain in place and Schwan’s family of businesses will continue to offer delicious foods through its many trusted brands.

“We are entering a new and exciting era at Schwan’s, and we look forward to working closely with our new team members to further strengthen our operations and accelerate growth for the benefit of consumers, customers and employees,” says Schwan’s CEO Dimitrios Smyrnios. “CJ CheilJedang is an extraordinarily world-class and innovative company well-known for their success worldwide, and we are very impressed with their global growth plans and investments in the United States. The future for Schwan’s and our people is very bright.”

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