CJ CheilJedDang (CJCJ), South Korea’s leading food firm, is taking an 80% stake in US food delivery and consumer brands firm Schwan’s via its US susbsidiary, according to a report in the Minnesota Star Tribune.
Schwan’s turns over about $3 billion per annum and markets a variety of frozen retail products, including Red Baron, Freschetta and Tony’s pizzas, Mrs Smith’s pies and Edwards desserts, alongside operating its flagship food delivery service. Following the deal, the Schwan’s family will continue to operate the home delivery arm and the Schwan’s business will retain its headquarters in Minnesota.
The $1.8 billion deal will see CJCJ step up its presence in the USA, acquiring Schwan’s 17 food manufacturing facilities and 10 distribution centres. CJCJ currently operates five US manufacturing and distribution sites.
CJCJ said it aimed to use the Schwan’s deal to achieve greater cost efficiencies in the US market, as well as to enable it to bring its own Korean products into more US retail stores and restaurants.
Source: Minnesota Star Tribune