CJ CheilJedang to acquire Schwan’s for $1.84 billion
South Korean-based CJ CheilJedang (CJCJ) has reached an agreement to purchase a majority stake in Schwan’s Co. The transaction will include 80% of Schwan’s Co. and specific subsidiaries that focus on foods sold in retail and grocery channels and foodservice venues.
South Korean-based CJ CheilJedang (CJCJ) has reached an agreement to purchase a majority stake in Schwan’s Co. The transaction will include 80% of Schwan’s Co. and specific subsidiaries that focus on foods sold in retail and grocery channels and foodservice 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, Inc., which represents the legacy home-delivery business launched in 1952.
The sale will also include the company’s manufacturing and logistics operations and various professional and administrative services. 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, Minn. Additionally, the current senior management team at Schwan’s will remain in place.
Schwan’s is a leading U.S. food manufacturer and marketer with approximately 12,000 employees and a portfolio brands such as Schwan’s fine foods, Red Baron, Freschetta and Tony’s pizza, Edwards and Mrs. Smith’s desserts, and Pagoda Asian-style foods.
Press release (pdf)