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South Korean Food Firm Buys Majority Stake in Schwan’s
November 16, 2018
2 Min Read
A South Korean firm bought a majority stake in Schwan's Company. Image courtesy of Flickr user zionfiction
South Korean company CJ CheilJedang (CJCJ) entered into an agreement Thursday to acquire 80% of American food firm Schwan’s Company and some of its subsidiaries in a $1.84 billion transaction, the companies announced in separate press releases. The deal does not include food home delivery business, Schwan’s Home Service Inc.
“This transaction will provide CJCJ a platform for Korean Food (“K-Food”) expansion with access to manufacturing and distribution infrastructures across the U.S., as well as extensive R&D capabilities,” the South Korean firm’s release said.
Schwan’s has a nationwide frozen food manufacturing and sales network encompassing 17 production plants and 10 distribution centers. It’s comprehensive presence across the U.S. enables the American firm to compete with international competitors like Nestle in certain frozen foods categories. 20% ownership will continue to be held by the Schwan family.
“This is an exciting time at Schwan’s. Over the past 66 years, our family, with the help of thousands of employees, has proudly built a very unique and successful food business that reaches consumers virtually everywhere they eat,” Paul Schwan, son of the company’s founder and a member of its board, said in a statement. “By becoming a part of an innovative, global team such as CJ CheilJedang, Schwan’s will be positioned to achieve new levels of growth in the spirt of the vision put forth by my father, Marvin Schwan, many years ago.”
The companies expect the deal to close within 60 to 90 days. Following the close of the transaction, Schwan’s will join CJ Foods America Corp. as a subsidiary. Its operations will continue to be run from offices in Marshall and Bloomington, MN.
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